US stock market has been confounding market bears and hot shot technicians.
Even hot hot jobs report could not put any dent in any averages....
Bulls Bears ratio is also confused with bulls @ 38.4% and bears @ 31.5%...who could have predicted a total stalemate when DOW is breaking out
Bears are firmly restating that new lows are on track
Technicians pointing their arrows south....
This only means that there is all the buying left in this TAPE....
By the time Bears & Technicians are convinced no more new lows, we should be making new highs in many Indices.
RSI reading are showing many indices are in 60 area with XLB & DOW @ 68.97 & 66.00 these are number 1 & 2 best relative performance
Worst one from RSI point of view is XLE @ 51.43....lowest ranked
This is a market where you ignore the noise and stay in the market with your best ideas
This Stock Market is definitely looking six months ahead and see lot of good things in US economy thus a very strong stock market.
Market has a mind of its own, stable when noise is very loud and unstable when everyone is calm.
Biggest lead signal is " never fight the TAPE "
Fed meeting & decision is all baked in, looking ahead is the name of the game....
Good luck with your own analysis and comfort level.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hi Saleem,
Last week: +0.94% (YTD: -25.54%)
Notable Leaders: GTLB SNAP
Notable Laggards: SYM BMEA
It's hard to believe we only have 4 weeks left in the year! It was a memorable year, but one we'd all like to forget. I think your analysis is spot on - we may finally be seeing the light at the end of the tunnel as even seemingly bad news for the market is treated well as all the remaining negatives have been priced in. If we enter the new year in this kind of mode, next year could certainly be kind to the bulls after a brutal one this year. I look forward to a renewed optimism in some long term growth stocks of which I am particularly interested as usual.
Holdings: SYM GTLB LYFT PLAY SNAP IONQ UPWK BMEA ZENV, cash 0%
I am currently holding less stocks than usual as I try to stick with comfort as the market is still choppy, but 100% exposure is definitely warranted of course.
Stocktrader
Hi Stocktrader,
Last week UP 6.33%
YTD Down 8.27%
Saleem
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