Market has been staging a great comeback, S&P 500, Nasdaq & SOX are showing incredible strength.
All of the above have crossed recent highs which could be taken as resistance.
To analyze further, we need to look @ RSI as it stands right now :
RUT 54.17
DOW 59.00
SOX 65.83
S&P 500 66.10
Nasdaq 67.37
As you can clearly see that DOW & Russell 2000 are lagging badly and have not taken out resistance or its recent highs.
Nasdaq, S&P 500 & SOX look vulnerable to profit taking.
This TAPE has been a story of rotation, thus it may be wise to focus on RUT,& DOW stocks.
Market is certainly in an upward trajectory, may run away from current level towards making series of all time highs.
IF we have a pause in Nasdaq or S&P 500 then it is important to focus on those stocks which are poised for breakout.
Most sectors are behaving well and do usual rotation which could give trading opportunities even IF market keep going UP for few more days.
All in all when SOX do well, markets generally do well.
Good luck with your own analysis and comfort level with this TAPE.
BLOG does NOT give buy or sell.
Saleem
5 comments:
Hi Saleem,
Last week: +1.31% (YTD: -1.71%)
Notable Winners: MLNX ORTX SAIL SPLK TWTR TWST
Notable Losers: TRIL HEAR KRYS IBP
Although it was a good week, my portfolio still lagged the index gains. There seems to be a few culprits every week that drag down the overall performance. I've noted some of these challenges already, but I think it's ever more important to pay attention to technicals now that we are in a more calm and less macro news-driven environment. It still feels like this market has more room to run based on the patient Fed, and I think growth tech remains the leader. As a final note, despite the market being at multi-month highs, the AAII Investor Sentiment survey indicates bullish sentiment dropping below average once again. This could provide additional upside as we move forward.
Holdings: ORTX SWKS PLCE SPLK PANW TWTR IBP MHO TWST SAIL KRYS RUN TRIL, cash 0.0%
Stocktrader
Hi Saleem,
Sold PLCE @ 87.85
Following through with my weekly comments, this stock is below both major moving averages and failed after filling a gap. I can't own it right now, and probably should have sold it sooner. I like the story from a market share perspective, but need to make sure business momentum can re-accelerate after the bankruptcy liquidation of Gymboree clears the system.
Added to RUN @ 14.97
I was a little short when I first bought this stock and so this fills out the position amount. The chart still looks really good for a move higher from here.
Stocktrader
Hi Saleem,
Bought TENB @ 30.45
I've been wanting back in this one for a while because of their threat and vulnerability technology, especially as it related to the Internet of Things.
Stocktrader
Hi Stocktrader,
Last week UP 9.57%
YTD UP 79.66%
Good luck with more RUN.
Saleem
Hi Stocktrader,
Good luck with TENB.
Saleem
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