Indices have come a long way since low point in 3rd week of June.....
Nasdaq has moved UP from 4574.25 to 5232.90, a move of 658.65 points or 14.40% in a short span of 8 weeks...
Here is the RSI comparison :
Dow 61.82
S&P 500 @ 62.77
Nasdaq 68.90
Bullish sentiment is @ the highest level in a very long time, currently @ 54.2% and bears only 20%....
VIX @ 11.55% ...52 wk low is 11.02
All of the above "fast & furious UP move " is flashing warning sign......
There is a need to pay attention to this "overbought scenario"
It is a good idea to book profit where RSI is hitting 70 area and buy those sectors which are lagging like energy, gas & base metals......
This TAPE has been very good for most of us, thus it is important not to be complacent.
It is also a good idea to reduce exposure until we get some kind of correction.
VIX RSI are generally good in flashing warning signs......
A gradual booking of profit is highly desirable.
Earnings are mostly out of the way, thus a major catalyst is gone.
Next 3 weeks may be on the down side......
Good luck with your own strategy and analysis.
BLOG does NOT give buy or sell.
Saleem
7 comments:
Hi Saleem,
I had a couple of orders in for AKS and missed by pennies both times under $5.15. Although I really like steel here still for multiple reasons, I'm having a hard time paying up so much in just a day...
Stocktrader
Hi Stocktrader,
$5.39 is not a bad price for AKS...it should get to $7 shortly.
Saleem
Hi Saleem,
Added to X @ 22.29
I'd like to add some more AKS too if the price is right. Steel stocks have pulled back significantly from the highs and their earnings power hasn't been this good in years. Entrenched negative sentiment should help price appreciation as that sentiment slowly turns positive. Short interest is huge in X.
Also, I forgot about a speculative stock I had researched on Saturday and it's up 4%+ today. Hopefully I get another chance at it.
Stocktrader
Hi Saleem,
Added to AKS @ 5.40
Stocktrader
Hi Stocktrader,
Good luck with more X and AKS.
Saleem
Hi Saleem,
Bought a speculative position in TRIL @ 10.77
I did some research on Friday and Saturday and like some of the early progress from this company along with the breakout technicals and very undiscovered nature (avg 3-month volume = 68k).
Stocktrader
Hi Stocktrader,
Good luck with TRIL.
Saleem
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