Sunday, June 18, 2023

US stock market overbought.....

 Last six months Nasdaq & QQQ has been running away in a major bull run

QQQ is UP 43.43%

Nasdaq is UP 35.92%

IF you annualize these numbers, It has been an incredible run already.....

Average return in S&P 500 has been 8%....

Many are wondering what to do now in US Stock market

 Many also have missed to see this bull run ....

Trouble with stock market IS, there is always many issues like Higher Interest rates, Higher inflation....

BUT once issues are known, then the discounting or pricing in also starts...which IS what most traders  / Investors are most afraid and miss IT completely....

Stock market always looks ahead...6 months ahead....

For near term we ARE OVERBOUGHT...

RSI is clearly showing that Nasdaq & QQQ IS OVERBOUGHT

RSI in QQQ is 74.86..after Friday's pullback

RSI in Nasdaq is 73.29

RSI in TSLA is 85.94

RSI in NVDA is 74.56

RSI in ARKK IS 69.57

RSI in AI is 67.61

Based on above a pullback for 3 days is not out of line, 1 day pullback already happened on Friday..2 more to go....

WHY am I predicting total of 3 days pullback....

Because next 2 days may be severe......

AS this IS a major bull market, stocks can turn higher very quickly.....

SO have your buy list ready....

What IS different about this market, It is very few stocks which is carrying this market .....

Nasdaq is clear leader of this bull run....

Even in 3 days of so called pullback, you can quickly do daytrade and make money....

I do not short or do Inverse trading @ all...just my preference.....

I would rather zero IN on few stocks and keep trading for singles going forward...NO NEED for HOMERUN.....

SO FAR..my approach in few & selected stocks have given me incredible gains....my best ever....

Last week my portfolio was UP 10.86%

Year To Date my portfolio is UP 115.27%

Good luck with your OWN homework and comfort level with this market.

Please note world markets and Toronto Stock Exchange is open on Monday, SHOP.TO trades in Toronto plus major US stocks in Canadian $ version.....

BLOG does NOT give buy or sell.

Saleem

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