US stock market on Friday gave a very troubling picture.....
Excuse was Russia, but it reflected more of its own negative slant...
Technically speaking, we are on a troubling downward slope
Nasdaq is the first major index which is "staring @ Death Cross "
Nasdaq has come down a long way from strongest index to showing
most technical deterioration......
RUSSELL 2000 is showing death cross......small cap in real trouble
TAN / Solar stocks also showing Death Cross
On the strength side, nobody should be surprised that XLE is making new 8 year high, Energy stocks keeps on making new all time highs, largely ignored by " smart crowd"
SO...there is much more room to go UP in XLE
RSI wise XLE is sporting a very healthy 72.00...more room to run to 80++++
TAN / Solar is showing weakest RSI @ 39.78
Second most strong RSI of 55.09 is shown by JETS, airlines ETF
XLF showing 3rd strongest RSI @ 53.25
Nasdaq showing 2nd weakest RSI @ 40.80
As one can clearly see that there is a " strong message from TAPE "
Never fight the message of market when it is so clear cut....
It will be very difficult to make money in this type of TAPE unless you are in right sector and in right stocks, first may be easy after the fact, BUT stock selection requires deep study of fundamentals & technicals....
Do not be complacent, when market is proving you wrong, please accept and make necessary changes.
Good luck with your own analysis and comfort level.
BLOG does NOT give buy or sell.
Saleem
4 comments:
Hi Saleem,
Last week: +2.27% (YTD: -13.89%)
Notable Leaders: USER VERI PLAY GMBL SSYS
Notable Laggards: PINS BMEA ZENV
It was another rebound week for the portfolio despite most indices falling (Russell 2000 higher though). Whether this is a true bottoming situation or just an oversold bounce remains to be seen, however, I still believe that companies with good earnings and growth can continue to perform as the economy is fairly strong and rates remain well below even recent historical averages. Many of the smaller companies will report in the next 3-4 weeks, and that should provide insight into positioning for the rest of the year.
Holdings: PLAY SNAP AVLR ZIP SSYS ENPH VERI PINS CXM USER UPST ZENV GMBL BMEA, cash 0%
Stocktrader
Hi Stocktrader,
Last week UP 5.46%
YTD UP 8.12%
Saleem
Hi Saleem,
Fantastic performance last week in the face of the market declines - you are on a roll this year!!
Stocktrader
Hi Stocktrader,
Thanks for your feedback, much appreciated....
Saleem
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