Indices had it with daily tweet and new threats to technology stocks for months.....
Can stocks climb "wall of worries "
Everything Chinese are being knocked to a bargain level....
Remember there are courts to deal with " stupidity of highest order "
Courts like Supreme court, International trade court and court of public opinion....all can revert everything in a hurry....
Lets look @ market through the eyes of RSI :
NASDAQ 42.55
RUT 45.52
SOX 47.85
S&P 500 48.66
DOW 51.67
XLF 57.60
As you can clearly see when we see low 40's in RSI...we are deeply oversold.....NASDAQ IS.....
XLF which reflects financials are the strongest group.....things cannot be that bad when Banks and Brokerages are the-best performing group.
Only Nasdaq & RUT are below 50 DMA.......
VIX @ 17.22... means....we can rally....IF tweets are stopped for 1 trading day.....
Chinese stocks will snap back fastest from deeply oversold conditions, world 2nd largest economy which is China....is NOT FLUFF..it is real and better performing for last 15 years......troubling / slowing economy are everywhere else......
SO...it is time to buy the weakness for a very quick and profitable trade.....
Deeply oversold equals buying opportunity......
Need I say more......
Good luck with your own strategy and comfort level.
BLOG does NOT give buy or sell.
Saleem
3 comments:
Hi Saleem,
Last week: -9.63% (YTD: +2.49%)
Notable Winners: none
Notable Losers: HCAT CSTL FSLR PLAN
It was my worst week ever that I can recall, especially as the overall market wasn't as terrible. Whether this is the beginning of the end for growth stocks, or just a large pullback during a rotation period, remains to be seen. As investors contemplate the end of the positive economic cycle, possibly colored by the backdrop of the election next year, it is possible they will not recover to old highs. The short term decline is too intense, however, and I expect a turnaround Tuesday and week.
Holdings: COUP PLAN CSOD HCAT NEWR FSLR ACMR VYGR IBP CSTL PSNL TRIL, cash 0.0%
Stocktrader
Hi Stocktrader,
Sorry to read about last week loss, I am sure you will regroup and regain your past stunning performance of previous 3 years.....
Last week Down 3.77%
YTD UP 63.53%
Saleem
Hi Saleem,
Thank you for the kind words! I've never underperformed a bull year so badly, but I'll continue to trust my methods to produce returns over time. One extremely poor week can't undo years-long successes.
Stocktrader
Post a Comment