US stock market is in very precarious technical formation.
Most Index / Indices are on the verge of collapsing below key technical levels.
Nasdaq below 50 DMA
SOX below 50 DMA
IWM below 50 DMA
XLE below 50 & 200 DMA
We are precariously hanging just above 50 DMA in the following Index / sector
S&P 500 hanging near 50 DMA
DOW hanging near 50 DMA
TAN getting near 50 DMA
Above is NOT a picture of a healthy market.....
Be ready for a sharp collapse below 50 DMA and towards 200 DMA
@ least that is the logical conclusion.....
Unless Politicians get their act together
No forced approval of any half baked vaccine for COVID-19
Market can handle due diligence in medical research, mid 2021 is OK with Wall Street
Now the real question is what to do now......
Market will do what it needs to do...
US election is a huge distraction for few weeks
All in all make sure you are positioned to deal with volatility on a daily basis....comfort level needs to be very high going forward.
Good luck with your own strategy!
BLOG does NOT give buy or sell.
Saleem
4 comments:
Hi Saleem,
Last week: -1.74% (YTD: +66.02%)
Notable Leaders: HCAT RUN UBER
Notable Laggards: ACMR ELF SQ GM BHVN
It was a pretty fierce pullback week with not many places to hide. I think I have to concede that we may not see serious progress in the averages until after the election now, and so it begs the question as to whether 100% exposure is appropriate. I like my positions, but will consider hedges or reduced exposure after rise days.
Holdings: AGCO HUBS ACMR MTCH HCAT PINS GM UBER VICR ELF SQ PSNL SWKS BHVN CHGG, cash 0.0%
Stocktrader
Hi Stocktrader,
Last week Down 5.76%
YTD UP 44.55%
Saleem
Hi Stocktrader,
Sold MU @ $49.20
Added 30% MGM @ $22.90
Saleem
Hi Saleem,
Good luck with the moves - my internet was down most of the day sadly, but back now!
Stocktrader
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