All indices are below 50 DMA, Nasdaq is slightly below, while Dow & S&P 500 is well below 50 DMA.
Chaikin Money flow is also negative in S&P 500 & Dow, Nasdaq is barely positive by 2 tick.
RSI is anywhere from 42.47 in S&P 500 to Dow @ 45.63, while Nasdaq is in between @ 43.93
All of this is pointing out a very weak equity environment.
Reasons given are many, from strength of US$ to Fed raising rates.
I have a feeling that this time, US election is also playing a role .
IF US election, is impacting, then we have until October 8th, to wait.
Earnings are in full swing, starting this week, important one from my point of view is AMD on Thursday.
Earnings may give boost to those stocks, which are beating estimates or guiding better than expected.
Last week was very troubling for indices and individual portfolios, last week Nasdaq showed weakness and has closed below 50 DMA.
It is important to have a second look @ your own portfolios, and see its relevance in current uncertain equities environment.
This weakness in equities and indices have come as total surprise to me.
Q4 is suppose to be strong in seasonality.
All i can say, that until October 8th, there may be a pause, before we resume a strong uptrend.
Good luck with your own strategy and your comfort level with current lethargy in stock market.
BLOG does NOT give buy or sell.
Saleem
7 comments:
Hi Stocktrader,
Sold LULU @ $55.90
Bought AMZN @ $815.74
Saleem
Hi Saleem,
I was looking at AMZN this morning also--it finally dropped into a potential buy zone. Good luck with the purchase!
Stocktrader
Hi Stocktrader,
Added 25% TWLO @ $46.19
Saleem
Hi Saleem,
Good luck with the oversold bounce in TWLO--it is overdue! :)
Stocktrader
Hi Saleem,
It was a truly terrible week last week for my portfolio. It was down 5.95% versus smaller losses in the indices. TRIL -12% and ZYNE -20% were the biggest losers with only AAPL and the ACIA-pickup gaining on the week. The only consolation is the portfolio is still +23.93% on the year, so I can't complain too much! :)
I think at least half the loss last week in the market was fears of the "Democratic sweep" with the other half being mostly Fed fears along with certain company negative pre-announcements. I am hoping after further thought this weekend, people will understand that a Democratic sweep is fairly unlikely still, and so some of the hardest hit groups can rebound some (like biotech). Some of the investor sentiment readings are pretty negative, so that could give us room to the upside should anything positive happen.
Portfolio: TRIL, QRVO ACIA SPLK SWN YUM, ZYNE DKS WLH URI, CNAT, cash 0.0%
Stocktrader
Hi Stocktrader,
24% gain is truly remarkable.
Political fear is justified based on what is happening daily.
Voters may give a stunning and shocking verdict to show disapproval.
Saleem
Hi Stocktrader,
Sold 50% CMG @ $394.61
Bought AAPL @ $117.11.
Saleem
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