US stock market has been on fire.....
October 2022 will go down in history as when US stock market rocketed UP fast & furious....
DOW performed the-best...went from a low of 28,725.51 to high of 32889.80 a gain of 4164.29 or 14.49% ....all in one month of October 2022
This is DOW 30 DUD stocks where most of the "dogs of DOW resides "
What happened to Nasdaq
What happened to SOX
That is the sad part of the story......
BOTH Nasdaq & SOX are sitting below 50 DMA & 200 DMA
Only TAN ( Solar ) stocks has performed worst based on RSI of 48.20..also below 50 DMA & 200 DMA
" what happened to ....world we knew "
As you have gathered by now DOW is healthiest RSI @ 71.34...above 50 DMA & 200 DMA
Second place goes to XLE @ 70.43...... also above 50 DMA & 200 DMA...
Third strongest sector is JETS Airlines ETF @ 65.71 RSI...above 50 DMA
Message of the market is clear......
Nasdaq & SOX needs to be " underweight "
DOW & S&P 500 is where the action IS and could be going forward...
Russell 2000 or IWM is behaving much better @ 62.53 RSI
For the curious mind who wants to know Nasdaq & SOX are @ 52.98 RSI & 54.03 RSI....only above from the bottom
This is what stock market is all about, IT CHANGES ON A DIME
We may get policy moderation from Fed this week in terms of " language " which may propel this market in buying euphoria......
Factor reality of this market in a well diversified format not ignoring overweight & underweight sectors
NEVER FIGHT THE TAPE
Good luck with your own strategy & comfort level.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hi Stocktrader,
Last week UP 6.78%
YTD Down 6.62%
Saleem
Hi Saleem,
Great charge last week and coming back to unch on the year!!
Last week: +8.22% (YTD: -18.07%)
Notable Leaders: SNAP FLL BMEA ENVX IONQ PLAY (all > +10%)
Notable Laggards: ZENV SYM (small losses)
As the data and some Fed watchers indicate a slower pace of hikes might be coming, nearly all stocks roared higher on deeply oversold multi-week conditions. I think the best indicator of the current market health is the small cap outperformance this week, and I suspect this continues into year-end. Identifying the winners for the coming months depends almost entirely on relative strength as tax-loss selling kicks in. I'll be watching more earnings this week to find those winners, and will cut temporarily even my favorite stocks like SNAP if they are lacking momentum and catalysts right now.
Holdings: SYM PLAY ENVX FLL IONQ UPWK LYFT GTLB BMEA ZENV, cash 0%
Stocktrader
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