YES....It was a banner week for US stocks market....new all time highs allover....
New all time highs started with SOX
Followed by S&P 500
Followed by Nasdaq
NOW...we are all set to conquer new all time highs in :
XLF.....Financial ETF only .20 away
DOW....Famous Dow 30 stocks only 53 points away
The ONLY laggard is Russell 2000 which is 192 points away or 11.02%.....maybe 2 weeks worth of UP move.....only bargain left in market......
Here is the RSI reading :
XLF 68.55
S&P 500 66.56
Nasdaq 65.51
SOX 64.16
DOW 62.81
RUT 59.36
RSI is showing that we have not reached deeply overbought condition as we have not touched 70 area yet. In strong markets, we have seen RSI go as high as in 80+++then we start corrective process, sometimes correction or pullback go in stages.
Pullbacks or correction can be as low as 2% or 3% as stage 1 pullback....then another run @ new highs.......
Serious pullbacks are normally 5%......then another run to new all time highs
Finally when last stage correction comes, then market pulls back as much as 10% area.....
It IS almost dart throwing stage in market now, where it sticks, that stock goes UP
ALL BOATS ARE LIFTED......
Good to be in market in strongest quarter of the year, famous 4th Quarter......
SO...trade it....book profit...rotate into laggards....all strategy seems to work....
My recommendation is to stay with the winners as they keep making series of new highs and buy some laggards.....
Good luck with your own strategy and comfort level.....
BLOG does NOT give buy or sell.
Saleem
3 comments:
Hi Saleem,
Added to AGCO @ 78.76
It was a low position size, but price action shows there is room to run, hence the add.
Bought FSLR @ 54.05
Given the rise in energy prices, I hope FSLR can find its legs again. The deal slippage in the last quarter should be merely temporary.
Stocktrader
Hi Saleem,
Last week: +1.13% (YTD: +2.95%)
Notable Winners: IBP SWKS VYGR VICR CSOD
Notable Losers: PINS PSNL ACMR
The portfolio performed acceptably this week, although my YTD returns are paltry compared to the market, especially as it breaks out to new highs. I am still struggling with the weight of some growth stocks that have crumbled in sentiment, holding on for what I feel are now underestimated prospects. I have, however, become more selective, but too late to save this year's relative returns. It feels like we've transitioned into a mostly rotating bullish market, which sets up well for relative strength and chart watches.
Holdings: CSOD AGCO PLAN VICR LITE ACMR FSLR PSNL VYGR TRIL, cash 15.5%
Stocktrader
Hi Stocktrader,
Good luck with FSLR & more AGCO.
Last week Down 1.10%
YTD UP 64.76%
Saleem
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