US stock market technical picture has gone south in a decided manner.
Weakest technicals are in Material sector with an RSI @ 33.45 and well below 50 DMA
Second weakest technicals are in DOW with RSI @ 40.46 and decidedly below 50 DMA
Third weakest is S&P 500 with an RSI of 43.57 and below 50 DMA
Among the better technical picture is from SOX which is @ respectable RSI of 54.38 and above 50 DMA although trend is downward sloping
Among improving technical pattern is TAN Solar stocks are behaving much better @ RSI of 53.31and above 50 DMA.
Another group which has shown improvement is XLE energy stocks are showing RSI of 52.76 and is above 50 DMA.
Nasdaq is struggling with RSI of 49.84 and slightly above 50 DMA
IWM Russell 2000 small cap with RSI of 49.58 but barely above 50 DMA
All in all a very weak technical picture of market...
Many factor is contributing to this downward sloping market, First is, Fed is behind the curb is dealing with Inflation which IS rampant worldwide.
Second is 4th wave of Delta variant which is adding to many disruptions....
Third and most surprising, despite rising wages, not too many jobs are being filled in North America, latest estimate over 9 million jobs vacancies....
Other ongoing disruptors are sky high freight rates worldwide, containers rates are 10 fold high..
Shortage of chips is a huge disruptor with no capacity increase in sight.....
Not to mention US China political conflicts on many fronts which IS dragging other nations in this mess.
Chinese internal crackdown / monitoring / rules are also creating uncertainty for investors / traders
Do not recall so many things going in wrong direction @ the same time....
Fed meeting this week will add to uncertainty till Fed policy statement @ 2 PM Wednesday....
Monday / Tuesday could be " very tough for this market.....
Many key index may tumble below 50 DMA .....
Looks like a " washout scenario building up "
Be ready to show conviction / patience until Wednesday and maybe until Friday of this week depending on market interpretation of Fed policy statement...
Good luck with your own interpretation of current market & Fed impact.
BLOG does NOT give buy or sell.
Saleem
6 comments:
Hi Saleem,
Last week: -0.76% (YTD: +37.27%)
Notable Leaders: ZIP ELY FSLR LYFT
Notable Laggards: GRWG BMBL ZENV FCX
In a pullback week for the market, the portfolio slipped as well. I made many moves this week to pare back exposure as the technicals deteriorated, and look to be an opportunistic buyer when conditions change.
Holdings: SQQQ (23%), ZIP AGCO LYFT PHM PLAY MNST FCX ZENV, cash 34%
Stocktrader
Hi Saleem,
Bought FSLR @ 96.60
With high natural gas prices around the world, I think solar becomes ever more important.
Stocktrader
Hi Stocktrader,
Last week UP .39%
YTD UP 4.07%
Good luck with FSLR.
Saleem
Hi Saleem,
Added a little AGCO @ 120.57
Stocktrader
Hi Saleem,
Bought a speculative position in BMEA @ 10.49
Stocktrader
Hi Stocktrader,
Good luck with AGCO & BMEA
Saleem
Post a Comment