US stock market is in overbought territory.
Nasdaq RSI @ 73.64
S&P 500 RSI @ 71.90
Above RSI is cause for concern as Nasdaq & S&P 500 are in overbought condition after making series of new all time high.
DOW RSI @ 61.26 leaves room for further move UP, Friday DOW also made a new all time high.
TAN RSI @ 63.14 has moved UP sharply after being in oversold condition.
SOX RSI @ 60.64 leaves some room to go higher still.
XLE RSI @ 54.67 looks ready to move higher along with higher oil prices.
IWM RSI @ 52.27 leaves Russell 2000 room to make a new move towards new all time high.
SLV RSI @ 47.75 is resting after good price action earlier.
XLB RSI @ 44.95 leaves materials to consolidate and move higher.
Currently US stock market is in a difficult and unpredictable stage, leaders are in overbought territory while most others are either in oversold area or are ready to move higher.
Based on mixed picture, It IS a wise move to shift to lower RSI stocks and be well diversified to benefit from ongoing rotation.
Markets are NEVER predictable, more so now with mixed picture of different sectors.
Exposure can and should be reduced until Q 4 earnings are in play which is the strongest time for market cycle based on historical performance.
Good luck with your own analysis and your comfort level.
BLOG does NOT give buy or sell.
Saleem
6 comments:
Hi Saleem,
Last week: +0.96% (YTD: +30.05%)
Notable Leaders: ZIP GRWG
Notable Laggards: DDD SOXS
Even though the portfolio is slimmed down in positions and more neutral due to hedging, it remains volatile at times. The market overall marched higher except for small caps which fell with 3% of underperformance (quite significant). I was on vacation last week and therefore made very few moves, but I hope earnings season will bring more opportunities. It feels like my short hedges are "wrong" given the enduring positive backdrop of the indices, but I'll keep them for now.
Holdings: TZA (21%), SOXS (16%), FSLR GRWG ELY BHVN AGCO ZIP DDD UPST, cash 12%
Stocktrader
Hi Saleem,
Bought BLNK @ 37.76
Taking a flier on the buildout of charging stations
Stocktrader
Hi Stocktrader,
Last week UP 1.93%
YTD UP 13.36%
Saleem
Hi Saleem,
Bought DMYI @ 10.63 on speculation about quantum computing
Stocktrader
Hi stocktrader,
Good luck with BLNK!
Saleem
Hi stocktrader,
Good luck with DMYI
Saleem
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