Sunday, December 1, 2019

8 week rally in market...where next?

It has been 8 weeks since we started to rally in early October, It is important to factor this in your near term trading / Investing decision.

 Nobody can predict how long this rally can go on, BUT being aware of this stretch is critical.

 We can slump for 2 days very easily....

 We can also do a slow grind to higher highs...this is a more probable scenario.....

 When we slowly go up with few pauses, that is where rotation come in handy.

 I definitely see rotation and base building for stronger stocks...

 Also advisable to stay in the market with some powder dry.

 Here is a look @ my favorite and reliable indicator RSI..and they are :

 Nasdaq          70.20

 S&P 500        69.34

 DOW             66.02

 IWM              65.95

 SOX               55.31

 Nasdaq & S&P 500 are overbought, not deeply though.

 Russell 2000 & SOX are relative bargain, SOX @ very attractive entry point after seeing selling.

 As we can see that some sector of this TAPE are overbought and some are bargain, that is when rotation is a very good strategy....

 SO stick to tried and true RSI indicator and position accordingly......

 Do not overstay your welcome in stocks which has made you good money, book your profit and move on to next great idea of yours.

 Good luck with your own strategy and comfort level.

 BLOG does NOT give buy or sell.

 Saleem
at

3 comments:

  1. stocktrader_1996December 2, 2019 at 6:24 AM

    Hi Saleem,

    Last week: +4.76% (YTD: +13.39%)
    Notable Winners: PTON ENPH LITE DDOG VICR
    Notable Losers: AGCO

    It was a nicely outperforming week thanks to some specific 10-20%+ movers in the portfolio. It has been a long while since my picks have been working this well, but I am pleased I can finish out a somewhat-difficult year for me in a positive fashion. The overall market feels like we'll experience a drift higher into year end, but a delay in the Dec 15th tariffs is a necessary piece I believe.

    Holdings: PLAN PTON LITE GTLS AGCO CSOD TDOC BHVN ENPH VICR CSTL TRIL, cash 0.0%

    Stocktrader

    ReplyDelete
  2. stocktrader_1996December 2, 2019 at 7:40 AM

    Hi Saleem,

    Sold AGCO @ 77.91

    Bought AVLR @ 73.92

    Did a swap based on relative values this morning.

    Stocktrader

    ReplyDelete
  3. Stocks100December 2, 2019 at 10:01 AM


    Hi Stocktrader,

    Last week UP 2.3%

    YTD UP 61.67%

    Good luck with AVLR

    Saleem

    ReplyDelete