Here is a quick snapshot of indices and some sectors, they are giving conflicting reading, IF you believe strong sectors, then we are in trouble, BUT.....IF you look @ weak sectors, then it is a screaming buy....based on old lense....
Here is the story of RSI in select sectors / indices :
XLF 75.50
DOW 74.13
S&P 500 71.63
Nasdaq 57.31
RUT 55.81
SOX 40.15
As you can clearly see from the above sample, where it is overbought and where it is " deep value " or maybe NOT...
Star of this rally was financials where MS GS BAC JPM WFC C have taken this sector into strongest performance in many years.
BUT.....SOX is where the " deep value is " or is it ?
Nasdaq is definitely lagging considering AMZN GOOG AAPL are heavy weighting.....
Nothing to worry here, but financials may be the story for next 5 years, like technology has been since bottom of 2009.....
For historical perspective S&P 500 was 666.79 in 2009, today it is 2651.56...a gain of 1984.77 or almost a gain of triple......
Gains in Nasdaq has been off the carts..looking @ 5 times in same period from bottom of 2009...
On a relative basis S&P 500 has more room to run....
We all are too used to technology stocks, which needs to change ASAP.....
Strong gets stronger like financials and weak gets weaker like SOX......
Next week market may gain more momentum on tax deal.....
Anyway......things are changing as illustrated above......
It is extremely prudent to have overweight exposure in financials.......
Good luck with your own evaluation of trend & comfort level.
BLOG does NOT give buy or sell.
Saleem
5 comments:
Hi Saleem,
Sold TRIL @ 11.27 to take profits.
Stocktrader
Hi Saleem,
Sold SAIL @ 15.04 to take profits.
A very recent offering by AMZN may limit the potential upside for identity governance providers like SAIL and OKTA, even if SAIL seems cheap still. The recent IPO status means there is less liquidity if something should go wrong.
As for selling TRIL earlier, it seemed the data from ASH was fairly lackluster and so I decided to take profits since there was much anticipation ahead of this release. It turned out to be a better move than I expected.
Stocktrader
Hi Saleem,
Sold AAPL @ 172.04
It feels like momentum is fading for the new iPhone sales so I think the upside is limited here. I'll take today's pop to sell.
Stocktrader
Hi Saleem,
Sold MU @ 42.84
The fundamentals and chart are both getting shaky here after a great 2017 up until now. I'm moving to the sidelines for now.
Stocktrader
Hi Stocktrader,
Great moves in booking profit in most of your trades.
YES...we need to constantly evaluate, what is going to work going forward.
Good luck with your next moves......
Saleem
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