Indices have seen relentless selling, 5 straight days of down down move.
All the froth from this TAPE is over.
RSI is back into very attractive buy levels as listed below :
RUT 44.16
DOW 48.92
SOX 48.95
S&P 500 49.35
Nasdaq 50.20
As you can clearly see all indices except Nasdaq is below 50 RSI, RSI in 40 has been recognized as a good entry level, most pullbacks ends in 40 RSI area.
Also you can see that most indices and index are testing 50 DMA & 200 DMA major support area, a turn UP from those support level will be a very good technical reading for those who follow.
Stocks are getting participation from most sectors on a rotation basis, this is a healthy sign.
VIX also in 16 area normally a support number in bullish TAPE..
VIX did not shoot UP in this pullback, a sign that professionals are not looking for a major slump.
SO...it is important to position with strong stocks to make or recoup investment dollars.
All of the indices and key index are above 50 DMA which is a key technical support.
Good luck with your own take on this market and your own comfort level.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hi Saleem,
Last week: -4.69% (YTD: -2.98%)
Notable Winners: TRIL HEAR
Notable Losers: SAIL ORTX SPLK URI PANW TWST FSLR PLCE KRYS
It was a terrible week across the board with very few winners. It felt like my performance was much worse than the indices even, but the Russell 2000 was -4.26%, so it was really just bad for everyone. I have struggled this year finding consistent winners, but I think the large selloff in the cloud stocks after earnings are just a pause that refreshes. The broader market though feels really terrible like we are in a bear market due to slowing global growth that can't be revived. It does feel like a 9th inning kind of rally we had this year so far and now have a rolling top. I'll be watching carefully to see how this plays out as the buying energy has faded.
Holdings: ORTX MLNX PLCE IBP PANW SPLK TWTR MHO KRYS TWST HEAR SAIL TRIL, cash 0.0%
Stocktrader
Hi Stocktrader,
Last week Down 10.37%
YTG UP 70.09%
Saleem
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