Sunday, June 23, 2019

US stock market is overbought......

US stock market made substantial progress last week in celebration of Fed new lower rates statement.

S&P 500 made a new all time high.

DOW made a new 2019 high, DOW came within 494 points of making a new all time high.

Nasdaq came within 89 points of making new all time high

Here is a look @ current RSI :

DOW           68.72

S&P 500      67.53

Nasdaq         63.58

RUT             55.48

SOX             53.55

GLD             83.85

TAN              62.66

XLE              61.34 

IF we look @ above numbers, GLD is the best asset class as US$ loses preferred status to gold for now as war rhetoric heats up between US & IRAN.

DOW & S&P 500 are the strongest performer in leading averages while Nasdaq remains behind.

RUT is lagging while SOX is weakest among most followed sectors.

Many stocks have performed well in technology and are making series of new highs in B to B sector.

FB NFLX are behaving well

NVDA and TWTR are not so healthy.

As we are overbought and G 20 is meeting on 28th to 29th June in Tokyo, we have to wait for next weekend to know IF there was any progress made in China  vs US trade war......

While we work off overbought conditions, we should remain with strong performing stocks for markets to move ahead in coming weeks.

Good luck with your own analysis and your comfort level.

BLOG does NOT give buy or sell.

Saleem

2 comments:

stocktrader_1996 said...

Hi Saleem,

Last Week: +7.79% (YTD: +14.09%)
Notable Winners: PSNL TWST VYGR QURE SAIL LITE URI PLAN CSOD PLAN
Notable Losers: BCEL MHO

It was a huge week for the portfolio and the indices as the Fed appears poised to lower rates based on lagging inflation. Biotechs led the charge as "easy money" is most beneficial for them. In the absence of new news with regards to the trade conflict, I expect the current trends to continue for another week, especially into the Russell rebalance on Friday which tends to favor the newer stocks.

Holdings: QURE VYGR PSNL CSOD DAL LITE URI PLAN SAIL SPLK MHO BCEL TRIL, cash 6.5%

Stocktrader

Stocks100 said...


Hi Stocktrader,

Last week UP 3.96%

YTD UP 71.78%

Saleem