Indices are looking very healthy for Q4 run.
Here is a table of where major indices are from all time highs :
Nasdaq .7% away from all time high
SOX .8% away from all time high
S&P 500 1.33% away from all time high
Dow 2.18% away from all time high
Russell 3.3% away from all time high
Here is a look @ RSI :
Nasdaq 59.10
Russell 57.58
SOX 56.67
S&P 500 51.52
Dow 47.78
IF we look @ 2 tables above, there is a very clear & strong picture emerging, that Nasdaq is the strongest in all indices. It is important to be overweight in strong technology stocks. Dow is either near or @ low in both table, showing a laggard performance.
Russell is an interesting situation, although, it is lagging in terms of how far from all time high, but it has come quickly to be the second most strong in terms of RSI, lot of opportunities there.
Biotech, although, i am not a follower for a long time, but it has been a star performer and has got my attention now.
As we enter Q4, which is strongest Q in terms of technology and market strength, we are position to make series of new all time high, seasonality matters, so pay attention to your allocation and sector weighting.
Very few times, that Q4 seasonality is so strong, than currently visible, so take advantage of this seasonal strength by showing conviction and patience.
Good luck with your own strategy and comfort level.
BLOG does NOT give buy or sell.
Saleem
22 comments:
Hi Saleem,
It was a more amazing week than I realized! The portfolio was up 9.04% thanks to 20%+ contributions from TRIL AKS ZYNE CNAT. Additionally, WLH FDX TNA were all up 7-13%. A well-rounded huge week :)
We are off to another good start with ZYNE up ~10% on the heels of a good GWPH trial result.
Stocktrader
Hi Saleem,
I forgot to include the current portfolio:
TRIL TNA FDX SWN WLH SPLK QRVO ZYNE CNAT, cash 11.4%
Still eyeing DKS and/or BAC for entry. How much more can AMZN run? I still like it very much but I have a hard time buying something with so much positive buzz and overbought status.
Stocktrader
Hi Saleem,
Bought AMZN @ 800.42
Looking to sell FDX. After FDX's nice run (but with earnings and outlook not all that great), I'm looking to switch into AMZN for that "holiday" run.
Stocktrader
Hi Saleem,
Sold FDX @ 173.67
Stocktrader
Hi Stocktrader,
I did the right thing in buying ZYNE. Thanks for your advice.
Have a good day
Joseph
Hi Saleem,
Bought DKS @ 60.22
Portfolio: TRIL TNA SWN AMZN WLH SPLK DKS QRVO ZYNE CNAT, cash 3.3%
Stocktrader
Hi Joseph,
ZYNE is looking great this morning! I am getting more nervous that they'll want to raise cash eventually, but at this point it might be a near non-event as the trend is so strong.
Stocktrader
Hi Stocktrader and Joseph
Outstanding week for both of you.
Good luck with ZYNE, AMZN, DKS.
9% in a week is outstanding $$$/$$
Saleem
Hi Stocktrader,
I have only 600 shares of TRIL. Is it good to add more if it comes down? These days I am little cautious of presidential election.
Glad to know that you are doing great with your trades. Thanks a lot for your help
Joseph
Hi Joseph,
TRIL remains extremely undervalued for the potential platform of cancer fighting it can be. Good luck with your decisions!
Stocktrader
Thanks stocktrader for your advice.
Joseph
Thanks Saleem, It has been a very good year for me and I am indeed grateful to you and stocktrader. Good luck to you Saleem
Joseph
Hi guys,
Sold ZYNE @ 13.92
I just think it needs a break as it is extremely overbought on a technical basis, and based entirely on another company's news (GWPH). Granted it still probably remains undervalued here, but I want to see some profit taking after such a huge run.
Stocktrader
Hi Stocktrader,
It is always good to book the profit. After all it is a gain. I got a good gain in a day and so I also sold ZYNE @ 13.86. Looking to add some more to TRIL. Gl
Joseph
Hi Joseph,
Here's an article about GWPH's read-through to ZYNE:
http://www.benzinga.com/analyst-ratings/analyst-color/16/09/8495348/gw-pharmas-epidiloex-data-is-good-news-for-zynerba
It is a buy on a pullback for sure :)
Stocktrader
Hi Stocktrader,
Sold GG @ $16.71
Saleem
Thanks Stocktrader for giving more information about GWPH and ZYNE. I will keep an eye on them.
Joseph
Hi Saleem,
Good luck with GG proceeds!
Bought URI @ 74.87
Channel checks last week indicated a good summer season of utilization, and I think it is a good election play as both candidates want infrastructure spending. Their specialty rental centers could be a good area of growth for the future. It looks like a decent entry post-earnings.
Stocktrader
Hi Saleem,
Sold TNA @ 79.16
I am not sure the market direction from here, so I'll free up cash and go back to stock picking.
Portfolio: TRIL WLH SWN AMZN SPLK DKS QRVO URI CNAT, cash 16%
Stocktrader
Hi Stocktrader,
You are dealing with this TAPE with precision.
Good luck !
Saleem
Hi Saleem,
Bought AAPL @ 113.00
Today brought reports of a problem with another Samsung device on an airplane over the weekend. Everyone wants to own this ahead of next year's cycle, but this year's release is looking better than expected anyways. It also benefits from talk of repatriation by the candidates. I think the setup is interesting as many managers were well behind the curve on AAPL from an allocation standpoint.
Stocktrader
Hi Stocktrader,
Good luck with URI and AAPL....
YES..AAPL is showing relative outperformance.
Saleem
Post a Comment