Sunday, November 19, 2017

Rally continues.....

Despite FBI probe getting too close for comfort, TAPE may discount this issue quickly. Tax reform is going through its usual back & forth between House & Senate before it gets resolved. Nothing which this TAPE cannot handle.

Nasdaq has made new all time highs already, S&P 500 and then Dow could do this in holiday shortened week.

Here is a quick look @ RSI to see my optimistic view :

XLE        42.78

RUT        54.42

S&P 500 55.24

Dow       55.38

TAN       60.20

Nasdaq   63.61

SOX       65.37

Above table is showing nothing is in 70 area , where pullbacks have occurred.

Russell 2000 is showing biggest opportunity to move UP.

S&P 500 and Dow is @ good entry level.

PE is expanding with growth in PE across the board.

New 52 wk high list is an interesting place to pick your winners, may sound aggressive, but TAPE is such that strong is getting stronger.

Any technology or small cap which is sporting an RSI of 50 is @ a very good entry point.

Black Friday, Cyber Monday favors many stocks, stay with those ideas.

Many stocks are defying logic like SQ & OLED...may need a much deserved rest, selling calls on those can improve your return and offer neutral effect IF it pulls back as expected.

SO..all set to make series of new all time highs in indices and many stocks, we may have lot to thank about some Thanksgiving dinner.

Good luck with your own comfort level & strategy.

BLOG does NOT give buy or sell.

Saleem



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