Sunday, May 13, 2018

Few days of digestive phase in market....

Indices have come a long ways from dipping below 200 DMA to firmly above 50 DMA all in a short time span of 6 weeks.

Russell is strongest of all and is staring @ new all time highs....

RSI will tell all of us that few days of digestive phase is necessary, here is a list of key indices / sectors for RSI :

Russell      65.59

Nasdaq     63.55

TAN         62.10

S&P 500  61.48

Dow         60.17

SOX        59.45

As you can clearly see that RUT is most overbought and SOX is still in Bargain area relatively speaking.

@ this stage in Market, it is important to have a diversified portfolio.

SOX can be an overweight in most portfolio.

Volume was below average in the last few days, that is a big concern.

We need volume to have conviction in this northbound direction.

Most earnings are out of the way which may create a situation of lower volume.

Most stocks are far far from their all time highs, this creates buying strategy based on strength of many sectors.

Buying the strength is a very  profitable strategy near 60 RSI area...

Chinese stocks are behaving very well, BIDU is leading the pack now.

Good luck with your own interpretation of this TAPE and your own comfort level.

It is never easy to make money on Wall Street.

BLOG does NOT give buy or sell.

Saleem




6 comments:

stocktrader_1996 said...

Hi Saleem,

Last week:

Performance: +5.65% (YTD: +22.15%)
Notable Winners: APPN VICR TRIL SPLK FSLR BOOM YY COHU VCEL
Notable Losers: MHO BEAT

It was an amazing week with hefty positive contributions from many of my stocks. I think the big winners of last week are an important signal as to where the gains for the year will continue to come. Technology seems to be the key as investors question the sustainability of future global growth and therefore reach for the unquestionable growth even if the price is high. My thoughts are that this trend will persist through year's end, and so I find myself gravitating towards these stocks also.

Holdings: BABA SPLK FDX VICR GTLS BOOM APPN YY HUYA BEAT VCEL BILI SWKS COHU MHO SFLY TRIL, cash 0.0%

Stocktrader

Stocks100 said...

Hi Stocktrader,

Last week UP 8.40%

YTD Down 14.99%

Saleem

Stocks100 said...


Hi Stocktrader,

Sold NXPI @ $109.50

Saleem

stocktrader_1996 said...

Hi Saleem,

That was a great play. Nice one!

Stocktrader

Stocks100 said...

Hi Stocktrader,

Sold FSLR @ $75.27.

Saleem

stocktrader_1996 said...

Hi Saleem,

A nice two week run for FSLR!

Good luck with your next pick.

Stocktrader