From August 15th to November 4th...last 11 weeks has seen some of the most painful decline in markets, it has been a straight line decline in all indices, here is some of those stat :
S&P 500 lost 110.02 points or 5.02%
Nasdaq lost 308.47 points or 5.77%
S&P 500 RSI @ 28.26
Nasdaq RSI @ 28.07
It is not % loss which is alarming, but it is the length of this decline, which is painful.
Reason given for this decline started with US$ strength, then Fed intention of raising interest rate and finally it was election in US.
As we all know that election IS coming to an end in 2 business days.
There is more clarity now in this election than last week, baring any more surprises, it bodes well for Monday and Tuesday's trading.
We are "deeply oversold" which i have not seen since June, IF we factor RSI numbers, we are all set for a "major rebound"
All indices and strong stocks are near 200 DMA, which we have not seen since June or even as far back as 2015.
All of the above stat proves, that we are so oversold, that a little patience and conviction will go a long way to recoup most losses.
Stock market hates uncertainty, we all know that last week, created major uncertainty in US election.
Hopefully, winner of US election will be evident to all participant, and they will position themselves to benefit from an imminent election rally.
It has been tough 11 week for most portfolio, but, that is behind us.
Going forward, it should be a very profitable, as post election rally takes hold.
Good luck with your own analysis and comfort level with this TAPE.
BLOG does NOT give buy or sell.
Saleem
3 comments:
Hi Saleem,
And so begins the climb back...
The portfolio was -9.20% last week to bring my YTD to only +9.54%. TRIL (-50.5%) was the major problem with ACIA CNAT QRVO SPLK all down >5%. Bright spots included ZYNE and AKS both up >10%. I hope the election is properly resolved Tuesday so we can go back to stock picking.
Portfolio: TNA LYB FDX TRIL ZYNE QRVO, DKS ACIA SPLK, AKS, CNAT, 0.0% cash
Stocktrader
Hi Stocktrader,
Election is resolved , but it will not prevent " cry babies calling rigged till eternity "
Good luck with your portfolio.
Saleem
Hi Stocktrader,
You got TNA at the right time. I thought the market would be down on Monday due to election. The good news for Clinton really moved the market up. So I gave up the idea of buying it today.
I know TRIL is still lagging behind. At least we have ZYNE moving up. We all had some tough days, but we can never forget the good days come our way.Good days give us happiness, and bad days give us experience. Both are part of life. Life is beautiful.
Good luck to everyone
Joseph
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