Too many bulls ...flashing sell....

We are hitting extremes in bullish reading. which only means that pullback is inevitable.

Most of the other technical indicators are OK....

RUT or Russell 2000 is sitting slightly above 50 DMA, generally RUT is a lead indicator of stock market.

Most troubling remains the following ratio :

Bulls      64.4%

Bears     14.4%

Bulls @ 64.4 is @ top of its range before pullback, has happened every time when its this high, but they are saying  " it is different this time "

Time proves and disproves everything...thus we wait...

Many semiconductor stocks have pulled back from its highs, question is, is it time to buy or sign of  things to come......

NFLX RSI @ 45.87 is very attractive on paper, but is it saying something else in technical terms.....

BABA RSI @ 59.72 looks very attractive, it has topped Sales expectations for 1 day Sales....

FB RSI @ 56.62 is in the low side

JD RSI @ 55.79 looks good, it had good Sales also.

BIDU RSI @ 38.36 looks super cheap

TSLA RSI @ 33.10 looks like a bargain

AMD RSI @ 38.39 looks very attractive

CTRP RSI @ 26.53 trading @ lowest level in a while.

All of the above stocks are telling us that many stocks have pulled back from its recent highs, the question is, is it a bargain or going further down with the market.

Correction in stocks starts happening before overall market pulls back.

SO....we all play with odds, currently Bull Bear ratio is not very healthy, thus caution is warranted.

BLOG does NOT give buy or sell.

Saleem