Sunday, April 21, 2019

Market in overbought territory......

RSI is flashing an overbought market which may need to retrace some of it gains, here is a look @ RSI :

SOX          75.33

Nasdaq     69.12

S&P 500   67.05

DOW        66.41

RUT         51.96

Above numbers are highlighting where overbought condition is, it is SOX Nasdaq S&P 500 and DOW...all above 66.41.......60 area generally considered overbought, SOX @ 75.33 is overbought and need rest / pullback.

Russell 2000 has not participated in this rally which is a concern.

Except for SOX...no other index managed a new all time highs in this run...also a concern...

On top of high RSI numbers TXN reports on Tuesday, semiconductor stocks will react based on its result and more so on guidance...

TWTR which I own also reports on Tuesday.

Wednesday is FB & MSFT are key players in many technology theme.

Thursday is SBUX.....Chinese sales will be in focus.

Based on Fridays close, here are the key index from new all time highs :

S&P 500 is 35 points away.....

DOW 450 points away

Nasdaq  135 points away

Russell farthest from all time high lagging by 177 points....

SO...it is going to be earnings driven stocks and reaction for those sectors...TWTR earnings on Tuesday may impact social media stocks like FB....

FB earnings on Wednesday may impact TWTR......

Good luck with your own strategy going into earnings......

BLOG does NOT give buy or sell.

Saleem

2 comments:

stocktrader_1996 said...

Hi Saleem,

Last week: -3.73% (YTD: +6.42%)
Notable Winners: RUN SWKS WDC
Notable Losers: ALEC LQDA GNLN VYGR QURE SPLK SMAR PANW

It was a disappointing week as I lost all my gains from the prior week. Biotech and cloud stocks were the big losers as the better economic data and some industry-specific news shifted funds away from those secular growth areas. I attempted to diversify better as the week moved on, but I'm probably still too heavy in certain areas. I will try to address that as we move forward.

Holdings: LITE MPC WDC RUN TWTR SPLK MHO PANW ALEC VYGR QURE LQDA GNLN TRIL, cash 0.0%

Good luck to everyone as earnings season kicks into high gear! :)

Stocktrader

Stocks100 said...


Hi Stocktrader,

Last week Down 5.08%

YTD UP 82.98%

Saleem