Indices ready to make new all time highs....

Despite North Korea, Fed, non-repeal of Obamacare & NFL controversy, we are all set to make new all time highs in indices.

Here is the RSI picture of strongest and weakest sector / index :

XLE        77.13

RUT       71.25

DOW      67.49

S&P 500 62.98

SOX       62.97

TAN      56.46

Nasdaq   55.57

GLD       45.18

I am sure most of you are surprised by the most strongest sector, which is energy.

Another surprise is that Nasdaq is the 2nd weakest sector.

Russell is 2nd most in terms of strength.

The above list reflects changes  / rotation in this market.

Nasdaq weakness and weakness in many Chinese stocks are an opportunity to buy before they take off.

FANG weakness is known to everyone.

Rotation and strategic buying has been the right approach.

VIX is near 52 wk low and may go to new all time low very soon, this reflects current buying momentum and changes in investment strategies, namely rotation buying.

VIX near all time low and Nasdaq being the weakest, has never happened before in my memory.

Fed is moving very gradually with $10 billion to gradually moving to $50 billion in unwinding their MBS. This will not disrupt interest rates in the market place.

SO....all is set for a spirited buying in indices and stocks.

We may be starting a "new bull run ".....

Good luck with your own take of current market.

BLOG does NOT give buy or sell.

Saleem