Much has changed lately in US stock market....
Interest rates are rising faster than expected...
FANG has lost its strength...
TSLA slumped 24%...
Nasdaq below 50 DMA
TAN / Solar ETF is below 50 DMA
Leadership of stock market is in Airlines, Energy....
The above was not factored by majority of traders or institutions
Everyone is waking up to new reality, that old strategy is failing badly
Here is a look @ RSI for further verification :
JETS 68.31
XLE 63.77
XLF 59.07
SOX 50.35
IWM 50.05
DOW 45.24
S&P 500 43.50
Nasdaq 40.18
TAN 40.26
Anyone can clearly see how leadership in US stock market has changed, weakest sector is TAN, Nasdaq, S&P 500 & DOW....who could have predicted this change so fast......
Airlines and Energy stocks are sitting pretty @ top 2 sectors to be in......many cannot make this change as they are too used to technology day & night......
Markets do change, smart Investors & traders adjust or anticipate coming changes....
DOW & S&P 500 are barely sitting above 50 DMA...a negative open is all its going to take to bring DOW & S&P 500 into below 50 DMA to join Nasdaq....
The above scenario is a reality, not a very healthy picture " technically speaking "
Market does not have any catalyst to power UP only Negatives are lurking....
Please do your own due diligence and act defensively, any bounce needs to be sold, any profit needs to be taken....
Good luck with your own analysis & comfort level.
BLOG does NOT give buy or sell.
Saleem
5 comments:
Hi Saleem,
Last week: -3.01% (YTD: +17.09%)
Notable Leaders: TZA TPR AGCO
Notable Laggards: EH GRWG SUMO RUN LYFT MTCH
The market faced fairly heavy selling across the board with few stocks spared. The prospect of quickly rising rates scared growth investors, and my three most speculative stocks were down on average 20% in just the week. My feeling is that this is just a digestion process and we could move higher once this phase is over, but there's still a lot of unbalanced portfolios that need to adjust further. Now is the time to start looking for those growth stocks that still have some kind of justifiable valuation basis.
Holdings: TZA AGCO TPR FDX QRVO LYFT SNAP SUMO MTCH GRWG EH, cash 24.5%
With my cash and TZA hedge, I'm closer to neutral than I've been in quite a while, but I will be looking to add exposure on dips from here.
Stocktrader
Hi Stocktrader,
Last week Down 9.19%
YTD UP 3.86%
Saleem
Hi Saleem,
Bought some speculative GIK @ 13.76
It seems they might have a deal to supply Amazon delivery vans. You never know these days, but seems a decent try.
Stocktrader
Hi Stocktrader,
YES...good idea to trade what IF..GIK takes off....
Am trying my luck with an speculation in AH...will let you know IF it gets filled....
Saleem
Hi Stocktrader,
Bought NIO @ $46.70 in AH...my what IF stock...
Saleem
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