Fed promised " pain for everyone " but US stock market is all set to go higher.
After Monday's open when all margin calls are cleared, market should move steadily higher.
Many new short position were opened on Friday.
Guess what, they all have to cover IF they see market is NOT going lower the way they had hoped.....thus a rally will start...
Many regular market participant were extremely cautious going into Fed statement, thus we all have lot of cash to deploy....
Stock market can and does turn on a dime
Impossible to predict what comes next, BUT we play with " probabilities " or " odds "
Probability or odds are extremely high that Monday may see a low for this downturn...which means we may make a " double bottom " or confirm support second time making higher lows...
Monday could be the biggest tell tale of the strength of technical health of this market.
Once we turn UP on Monday, we may see a sustained rally
Sector wise there is a complete turnaround
DOW was strongest is now weakest based on RSI @ 42.33
XLE or energy was the weakest before, NOW is strongest @ 65.97 RSI
TAN or solar stocks are second strongest with an RSI of 55.70..giving a strong signal with golden cross
All other sectors are in 40's RSI.....so take your pick from SOX to Russell 2000 to Nasdaq
My pick will be Nasdaq which is sporting an RSI of 43.75
ARKK is seeing biggest inflow of funds despite being 50% lower.....faith in Cathi Woods is getting stronger.....me included...
SO lot to think about as to how to interpret this market, go with strength or go bargain hunting or a mixture of both....all style may work...but % gains may be the key....
Good luck with your own homework & analysis. Make sure your comfort level is very high with this market.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hi Saleem,
Last week: -2.64% (YTD: -8.66%)
Notable Leaders: BMEA ZENV GTLB ZENV
Notable Laggards: SYM LYFT COUP SNAP IONQ MTTR
The roller coaster continues as the market faced steep declines and the portfolio followed, albeit with less losses. The Fed's resolve in curbing inflation and inflation expectations surprised many on Friday with the market seeing one of the biggest red days in quite some time. Although it might feel like this was a turning point, it actually seems more like a sharp selloff indicate of a bull market instead--the action in coming days should tell us. Ultimately, I believe the inflation peak from the summer represents the bottom in the market as the Fed can only be more dovish from here as we see cooling in consumer prices. It may be choppy from here, but "it can't get worse" in Fed rhetoric, and some companies are continuing to perform well on their personal business plans. I would use this opportunity to pick the stocks you like for the future.
Holdings: PLAY GTLB SNAP LYFT FLL ENVX UPWK IONQ SYM BMEA MTTR ZENV, cash 0%
Stocktrader
Hi Stocktrader,
Last week Down 2.86%
YTD Down 7.32%
Saleem
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