In 6 trading days saw a pullback on interest rate jitters, reaction in TAPE were as follows :
Nasdaq Down 1.69%
Dow Down 1.89%
S&P 500 Down 1.93%
This was first pullback since election result, as expected, it was around 2%.
This TAPE has too much momentum which needed a rest before embarking on another march towards series of new all time highs.
On Wednesday @ 2 PM......Fed policy statement will come out with no surprise of .25% rate increase, this rate increase has been anticipated and is priced in , we may see "buy the news again " with usual UP and Down reaction.
Many sectors behaved well in 6 trading days of selling, SOX fared the best, actually maintained its upward bias. Some semis made a new 52 wk highs.
Biotechs are coming to life also and was among better performing.
RSI has come down in S&P 500 from above 80 to current 63.70, lot of froth has come out of this market.
It is important to be exposed to outperforming sectors, as they will be the leaders again.
New administration policies are the key driver of this bull run, it is being artfully managed with tweets and repeat statements.
Exposure needs to be high in this TAPE as many world economies are growing their GDP, India , China along with US are the key driver.
Chinese stocks are beginning to perk up and may outperform other stocks.
Gold may reach its bottom on Wednesday, could be a good pick going forward.
Good luck with your own homework and comfort level.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hi Saleem,
Bought OCLR @ 8.55
I think most of the negative catalysts have been played out or ameliorated. There's also a bit of a consolidation bug in tech which may benefit OCLR. I think risk/reward is finally favorable for me to enter.
Stocktrader
Hi Stocktrader,
Good luck with OCLR.
Saleem
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