Sunday, June 11, 2023

US stock market OVERBOUGHT.....

US stock market has enjoyed outsized gains lately.

S&P 500, Nasdaq & SOX are @ new 52 week highs

This IS most surprising when many famed technical analyst have NOT announced end of BEAR market YET...

Some are still waiting for retest of lows 

Some have declared reluctantly " this is a rally in a bear market "

BUT

NOW there are sign of FROTH in this TAPE

 US stock market is overbought in 5 popular sectors

Based on RSI 5 sectors are overbought

IF you can believe IT...Airlines / JETS are most overbought with 69.92 RSI

Nasdaq is 2nd most overbought with 68.58 RSI

SOX is 3rd most overbought with 67.51 RSI

S&P 500 is 4th most overbought with 65.78 RSI

RUSSELL 2000 is 5th most overbought with 62.54 RSI

SO....

What to do NOW....

@ least we know where the strength are

That is Half the battle in any market

FEW strategies which may be deployed @ this stage

BOOK PROFIT.....

All 5 sectors can still go higher & higher.....BUT with increased VOLATILITY

What I have done IS defined my selling points DAILY to take advantage of any SURGE...which happens too fast then fades as quickly...

BE an expert on few stocks which has momentum and trade DAILY

FOLLOW THE TREND.....AI AI AI

AI will cut cost big time for many companies.....some have trimmed labor many many times already like META & SHOP to name a few.....

BE AN EXPERT on trending stocks & follow the money....

There is tremendous money to be made with varying trading style BUT develop your OWN NICHE

SO....another week IS starting, develop or improve your own trading focus.....AI is bigger than anything we have seen YET....

Good luck with your own take and comfort level with sector and strategies.

BLOG does NOT give buy or sell.

Saleem


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9 comments:

  1. Stocks100June 12, 2023 at 5:05 AM


    Hi Stocktrader,

    Last week UP 20.99%

    YTD UP 104.41%

    Saleem

    ReplyDelete
  2. Stocks100June 12, 2023 at 5:06 AM


    Hi Stocktrader,

    Bought RIOT @ $10.30 in pre market.

    Saleem

    ReplyDelete
  3. Stocks100June 12, 2023 at 5:43 AM


    Hi Stocktrader,

    Bought TSLL @ $16.19

    Saleem

    ReplyDelete
  4. Stocks100June 12, 2023 at 8:07 AM


    Hi Stocktrader,

    Added 20% RIOT @ $10.17

    Saleem

    ReplyDelete
  5. stocktrader_1996June 12, 2023 at 8:42 AM

    Hi Saleem,

    Good luck with the new positions and adds!

    Stocktrader

    ReplyDelete
  6. stocktrader_1996June 12, 2023 at 8:46 AM

    Hi Saleem,

    Last week: +6.90% (YTD: +89.68%)
    Portfolio Leaders: SYM IONQ AI LYFT RCL
    Portfolio Laggards: ENPH

    It was another great week for the portfolio despite muted gains in the market averages. The Russell 2000 was the star of the show gaining 1.90% in an indication that the rally is broadening out. This bodes well for a grinding bull market throughout the summer months, which will likely catch many investors offguard still considering the gains we've made in some stocks/indices already. I think the message of the markets is that the Fed is almost done, and may be actually accomplishing a soft landing whereby employment stays strong but inflation is moderating. I will continue to look for individual opportunities, and I think diversification is key at this stage in the bull market.

    Holdings: TNA(x2) LYFT RCL PINS SCCO ENPH TOST HIMS IONQ ZENV, cash 0%

    Stocktrader

    ReplyDelete
  7. Stocks100June 12, 2023 at 9:05 AM


    Hi Stocktrader,

    SOLD SHOP @ $64.50

    Saleem

    ReplyDelete
  8. Stocks100June 12, 2023 at 10:49 AM


    Hi Stocktrader,

    Sold MRVL @ $61.92

    Saleem

    ReplyDelete
  9. stocktrader_1996June 12, 2023 at 1:17 PM

    Hi Saleem,

    You've been working the swings well!

    Stocktrader

    ReplyDelete