Indices have been taking out lows and piercing through.
Market outlook is extremely bearish.
Here is a look @ RSI :
TAN 27.45
RUT 28.04
SOX 28.74
S&P 500 30.40
Nasdaq 33.85
DOW 34.85
As you can clearly see.....all index / Indices are in deep oversold condition for a while...
DOW S&P 500 and Nasdaq are all below 200 DMA....
Nasdaq is the to far deep away from 200 DMA.
SO... what is the catalyst that can change direction ?
Earnings definitely are disappointing....so they are not the catalyst..
Interest rate scenario is extremely bearish, as much as 4 in 2019 and 1 more in December of 2018.
US internal politics is far from healthy, total divided nation...that cannot be healthy for economic growth.
Worldwide trade issues are still bogging down Chinese economy, which is slowing than consensus.
India is facing own challenges.
EU has to deal with Italy and Brexit...no agreement there either....
FB reports on Tuesday AH
AAPL reports on Thursday AH
Even IF they report better than expected, rally may be short lived as market trend is extremely bearish.
Bottom line is......stay conservative with less exposure, this " trend is NOT your friend "
Good luck with your own analysis and comfort level.
BLOG does NOT give buy or sell.
Saleem
1 comment:
Hi guys,
Last week: -3.21% (YTD: +28.48%)
Notable Winners: HUBS(profitable sell/buyback) APPN PLAN
Notable Losers: everything else
It was another heavy selling week for the indices, and the portfolio basically mirrored this. I am more uncertain about how to position than I have been in years, as I don't think this is a short-lived correction but the start of something bigger into next year. That said though, I still like to be a stock picker and can't often help being invested in companies I really like for the future. This weekend's deal with IBM/RHT might provide a boost to some of my beaten down stocks, but I still worry about the overall market and how that might affect things. Hopefully we've seen the worst of it in October and can take a breath into November/December.
Holdings: PS CSOD SAIL CHGG SPLK VRNS PLAN HUBS VICR TENB APPN TRIL, cash 0.0%
I've condensed and concentrated my holdings into stocks with which I'm personally more comfortable with earnings and valuation--a key for this market.
Stocktrader
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