Worldwide stock markets are in an " overdrive stage "
Most indices are extending their gains....
Most extended are SOX, XRT & IWM
Biggest laggard is GLD followed by TAN
All other sectors have more room to run
XLE may be able to do a " golden cross " IF current uptrend in oil stocks holds.....
SOX is sporting an RSI of 76.61....could easily go into 80+++
XRT RSI is 75.27.... on its way to 80+++++
Russell 2000 RSI @ 73.54...on its way to 80++++
XLE RSI is 68.75....may even touch 90.....IF current trend holds...longer the base...higher it goes...
Nasdaq RSI @ 70.35....IF you can believe it...it is a laggard now.....
DOW is lagging badly with RSI @ 64.95.....
S&P 500 RSI @ 67.96....is looking healthy.....without TSLA
IF we get stimulus deal done, this may give another boost to roaring bull......
What has caused all this " bullish mania "....it IS world Central Banks pumping liquidity with no limit, all well coordinated with low low low interest rates.....
I do not expect to see any change in Central Banks behavior anytime soon.....
SO enjoy this party as most sectors participates in this run to RSI 90....in most cases.....
Good luck with your own interpretation of this TAPE and your own comfort level.
Diversification works!
BLOG does NOT give buy or sell.
Saleem
4 comments:
Great Analysis. I expect a short boost after stimulus announcement and a sharp pullback. Market needs to cool off.
Hi Param,
Thanks for your feedback, much appreciated.
Saleem
Hi Saleem,
Last week: +2.51% (YTD: +130.61%)
Notable Leaders: ELY PLCE COTY LYFT LITE MTCH
Notable Laggards: PHM BHVN HUBS PINS
The rotation moved into "re-opening" stocks and Wednesday additions to the portfolio helped drive gains. Strength was broad based with only a few of the recent winners seeing some mild profit taking. I expect further positive moves into year end, with final US approval of the vaccines possibly another catalyst. Even the NASDAQ names that benefited all summer don't seem to want to pull back. This is another case of year-end effects where winners won't be sold.
Holdings: ELY GM EAT TPR LITE SQ HUBS PLCE TWLO COTY FDX MTCH PLAN FUBO BHVN, cash 8.6%
Stocktrader
Hi Stocktrader,
Last week UP 3.59%
YTD UP 64.40%
Saleem
Post a Comment