Sunday, March 15, 2020

Can stock market look 6 months ahead?

Normally stock market looks ahead 6 months.....

IF that is the case, there is lot to be optimistic about....

We all know we are facing 2 quarters of pain Q 1 & Q 2.....in terns of Sales & EPS...

Somehow bull bear ratio is still too bullish, bulls 36.2% bears 22.9%.....which has surprised me....maybe there is much more pain to come.....

@ bear market lows, it used to be 60% bear .......

News flow is fast & furious worldwide.....more and more infection being reported and more are dying...

Looking @ RSI, these are the numbers :

SOX        39.99

Nasdaq    38.67

S&P 500 37.67

DOW      36.76

IWM       27.43

Even after Friday's huge rally, Russell 2000 is in deeply oversold territory.

Oil can be useful in finding direction for stock market, IF Oil is UP...there is a good chance that Stock market may follow oil's lead.

Oil price is a real indicator of where economy stands in terms of growth / GDP

This TAPE has been painful for most of us, only those short this market were smiling....

I expect more volatility in near term, then a strong move UP from there.

I am staying in very high comfort / strong stocks based on current and future trends....

Good luck with your own analysis and comfort level.

BLOG does NOT give buy or sell.

Saleem


4 comments:

stocktrader_1996 said...

Hi Saleem,

Last week: -19.37% (YTD: -28.56%)

Nothing has been safe, but I am optimistic about the forward look like you. I think the key is to stay involved with comfort level despite extreme volatility.

Stocktrader

Stocks100 said...


Hi stocktrader,

Last week Down 28.86%

YTD Down 41.83%

Saleem

stocktrader_1996 said...

Hi Saleem,

Sold LITE @ 66.80

Bought HUBS @ 117.28

I think the rebound potential could be better for HUBS.

Portfolio: HUBS FSLY PINS AVGO VICR CSTL PLAN BHVN PSNL, cash 0.0%

Stocktrader

Stocks100 said...


Hi Stocktrader,

Good luck with HUBS...

Saleem