Many pundits are extremely worried about the lofty level of this market.
Many are calling US market as bubble.
Russell is looking shaky.
Materials are weak.
IF we look @ above two real reason, Russell and materials, it does call for some caution.
TAPE has been good and may remain so for a long time, but it may be ready to do some adjustments in high flying sectors.
Many semiconductors are making new highs or all time highs, they are looking vulnerable to profit taking.
Fed is ready to raise interest rates any day, that may give a jolt to this TAPE.
Financials have rallied sharply on Fed imminent decision, it may be "sell the news"
It may be prudent to book gains.
It is also recommended that, we position in beaten down sectors like Gold, Solar, Oil & Steels.
This market is ready for another "rotation"
Strong sectors takes a back seat and beaten down comes to forefront.
IF nothing else, beaten down may be a very defensive move @ this stage of market.
Pullbacks comes very quickly and without too much warning.
Recent volatility may be a good indicator,that this market is getting tired.
Current overbought condition requires all of us to take a second look @ our own enthusiasm for this market.
A brief 2% correction may be a welcome change.
Good luck with your own analysis and comfort level.
BLOG does NOT give buy or sell.
Saleem
5 comments:
Hi Saleem,
Sold DAL @ 48.57
The positive turn in PRASM and margins keeps getting pushed back and the price trend broke definitively today. I'll move to the sidelines and wait for further developments.
Stocktrader
Hi Saleem,
Bought SPLK @ 62.11
Wanted one of my all-time favorites back after this small pullback. I think they can continue to perform regardless of the macro environment as their platform gains more and more traction daily.
Stocktrader
Hi Saleem,
Bought GM @ 37.43
I continue to see the right moves being made by this management consistently. At 6x earnings with an aggressive buyback program in place, I think there's little downside barring an economic disaster.
Stocktrader
Hi Saleem,
Bought HUN @ 22.31
Ok, so this chart is really toppy looking, but the earnings power and catalyst of the spinoff makes me like it still. It was one of the stocks I looked at constantly last week because I wanted back in, so...back in I am now :)
Stocktrader
Hi Stocktrader,
Good luck with SPLK, GM and HUN.
Saleem
Post a Comment