Last 5 weeks have seen relentless selling in this TAPE, reasons keep changing but reaction is always severe.
Here is snapshot of RSI for major indices / index :
Dow 54.70
S&P 500 44.53
Nasdaq 35.73
SOX 34.77
RUT 29.69
One can clearly see that all indices have come down sharply, some are deeply oversold like Russell 2000, others S&P 500, Nasdaq SOX are oversold.
Dow is the only one that is healthy so far.....
Russell touched 200 DMA and closed above.
Nasdaq below 50 DMA
S&P 500 touched below 50 DMA but closed above
SOX well below 50 DMA
DOW well above 50 DMA
It is safe to say that we may have touched support on Russell 2000, SOX......
Other indices may go through their own test and may find support in coming days.
It may be a safer strategy to start switching into stronger behaving stocks.
Many stocks are behaving relatively better than most stocks into this selling, Chinese stocks for the most part have collapsed due to US China trade tension which is causing slowdown in Chinese economy.
Good luck with your own analysis and comfort level.
BLOG does NOT give buy or sell.
Saleem
3 comments:
Hi Saleem,
Last week's performance: -2.44% (YTD: +41.27%)
Notable Winners: TZA
Notable Losers: everything else
It was a brutal week for the market and my portfolio. I was modestly saved by the large TZA position and reduced long exposure for much of the week. I probably should have kept the TZA longer, but I am notoriously uncomfortable with any short or cash exposure as I love stock picking. I am looking for rates to stabilize here, which will hopefully lend support to risk taking again ahead of earnings and year-end. The longer term outlook for the market still seems challenged to me however, so I will probably look to get less exposed again if we bounce.
Holdings: CHGG(x2) CSOD MU VRNS APPN MTCH SPLK VICR PS SAIL PRNB STRO ESTC AVLR ALLK GRTS KRYS TRIL, cash 0.5%
I did trim a little MU on Friday to make room for some new positions and I forgot to post that trade. Also, I probably added too much speculative biotech exposure and may have to pare back some.
Stocktrader
Hi guys,
Added my small amount of cash to PS @ 24.39 due to extreme oversold conditions.
Stocktrader
Hi Stocktrader,
Last week down 6%
YTD loss 36.80%
Saleem
Post a Comment