Market is on a long uptrend with brief pullbacks and then on to new all time highs. This has been a sustained bull market, it is expected to continue this trend into 2018.
Many stocks are defying gravity, here is a list of few stocks with their RSI :
SQ 92.04
MRVL 91.92
OLED 84.43
AMZN 78.47
AVGO 71.12
AAPL 66.80
NTES 65.69
GOOG 65.04
SHOP 64.70
FB 64.52
BABA 63.64
Since this is an environment where strong is getting stronger, it is better to pick stocks which is showing relative strength.
Fundamental analysis is more important than technical analysis, as you can see, some stocks have crossed danger zone of RSI 70 with great ease and staying higher.
This TAPE has been extremely strong and has surprised many including me, it is OK to look back and come up with a strategy which reflects current momentum.
I do not expect current momentum to fade anytime soon, it is a rotational TAPE, they are all taking turns, different stocks within a sector also join in rotation, means rotation within a sector.
SO...a new 52 wk list is a very good place to start looking @ and see what their fundamentals are saying and take it from there.
A new week is starting, and a rethink IF necessary is in order.
Good luck with your strategy!
BLOG does NOT give buy or sell.
Saleem
No comments:
Post a Comment