US stock market is looking very healthy @ the close on Friday.
Russell 2000 is the first major index which closed above 50 & 200 DMA
TAN is the first sector to make a golden cross
All the major index are ready to take out 200 DMA
S&P 500 only needs 48 points to be above 200 DMA
DOW needs 144 points to be above 200 DMA
S&P 500 / DOW can run above 200 DMA @ open
Nasdaq needs a move of 463 points to be above 200 DMA, potential 2 day UP move
Strongest index remains Russell 2000 with an RSI of 75.10
2nd strongest now is a surprise, It Is XLF with RSI of 72.87
3rd strongest is S&P 500 @ 71.67 RSI
4th strongest is DOW @ 71.21 RSI
Weakest is XLE with an RSI of 60.26
What does it all means, that we are starting a bull run and all aspect of current market is above 60 RSI, a sure sign of good health for this market.
We may get a flood of funds allocation to US stock market once we cross 200 DMA in major indices.
Inflow of funds will push this market much much higher in a hurry.
It is a good idea to be patient and let the stocks run to its fair value, currently most stocks are below fair value.
Once most stocks in your portfolio are @ fair value, then It IS a good idea to book profit.
There is tremendous momentum in US stock market to go higher in a hurry.
Good luck with your own read of this market and your comfort level.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hi Saleem,
Last week: +3.05% (YTD: +2.32%)
Notable Leaders: ZENV SNAP PLAY FLL GTLB
Notable Laggards: UPWK LYFT IONQ
It was a nicely positive week for the market and the portfolio as the "peak inflation" notion took hold based on fresh data and commodity prices declines. Some stocks in the portfolio rested from big gains the prior week, but new ones took the reins and moved higher - this is exactly how bull markets look with its "rotating winners" unlike what we'd experienced at various points in the last year when everyone was just waiting to see if their stock was the latest to precipitously drop after earnings or the Fed or data. I expect this fresh bull market action persists into year end and we should stay fully allocated to stocks with the backdrop of economic activity having troughed already and on the move higher again.
Holdings: PLAY GTLB LYFT SNAP UPWK SYM COUP IONQ FLL BMEA MTTR ZENV, cash 0%
Stocktrader
Hi Stocktrader,
Last week UP 3.51%
YTD UP 5.46%
Saleem
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