Technicians and market pundits are predicting " a very bad September to remember "
So far by Friday the 10th September, they are generally right in their conclusion....
Mad Money is also joining in the bandwagon by predicting more pullbacks in coming weeks.....
Coming weeks means whole September should be a complete disaster.....
IF i look @ current RSI of 8 popular sectors / Indices they are only couple of days away from a major support...
I will not be surprised IF we have a " turnaround Tuesday "
DOW is sitting @ lowest RSI of 36.99.....below 30 should get support which could be coming Tuesday @ earliest....
I hate to disagree with " highly paid technicians who have the backing of billions of $ @ their call "
Markets go UP
Markets go DOWN
BUT...we have to be ready with our own strategy which could be:
BUY on weakness
SELL to book profit
STAY PUT with conviction & patience
I am in camp 3....stay put category
Market is in the process of digesting all the issues related to Delta variant and may be " nearly done "
TV & CNBC are rating driven...they go with the trend of yesterday to optimize ratings...
Best performing so far is SOX with RSI of 57.31 20 plus points higher than DOW...a good sign of "reversal coming your way "
Nasdaq @ 54.86 RSI is also showing sign of relative strength so far.....
SOX & Nasdaq being strong is a good sign that technology is alive & well...
SO.....September is just a month where bargains / strong stocks are a bit cheaper...nothing more nothing less.
Stay calm and buy when selling seems intense.....
Good luck with your own analysis & comfort level.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hi Saleem,
Last week: -0.90% (YTD: +38.33%)
Notable Leaders: IRNT FSLR LYFT
Notable Laggards: PHM AGCO GRWG GOEV ESTC ZENV GMBL BLNK
In a tough week for many stocks, a few key winners helped the portfolio withstand the persistent selling. I'm getting the sense that wage and some material inflation may be here for an extended period, and it may require a shift in my portfolio strategy. Despite the market very near all time highs still, some stocks have desperately bad looking charts. I think pruning the laggards in favor of stocks above moving averages is the proper positioning for year end. I was hoping that some of the small/growth stocks would see inflows again as investors came back from the summer holiday period, but so far that has not materialized. As rates likely creep higher, and oversupply in SPACs and IPOs flood the market, we may have seen the last of the boom times for certain stocks. My focus now shifts to beneficiaries of inflationary effects like consumer spending and material producers, and the charts will dictate.
Holdings: FSLR BMBL SNAP ZIP ESTC AGCO ELY MNST PHM PLAY ZENV LYFT GRWG DDD AMRS GMBL FCX BLNK GOEV, cash 0%
Stocktrader
Hi Stocktrader,
Last week Down 2.61%
YTD UP 3.68%
Saleem
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