After recent selling in US stock market, many participant are wondering where IS the support...
There is good news and there is bad news...
Good news based on my research.....DOW is sitting near support IF It holds...then DOW may go it alone
S&P 500 & Nasdaq is far far from support...needs time & some testing of support....maybe in stages....
Many stocks have pulled back big time...SHOP is among those...based on RSI which stands @ 47.71
Best way to be in this market IS to be mindful of RSI with great focus....
One can trim or take profit in high RSI stocks.....
Other approach which can work IF you stay in stocks which IS working, there are hundreds of stocks which has done well and looks good going forward.
Look @ new 52 week high list and select those which are lower RSI...
Markets are never easy.....It takes lot of home work & focus in right sector to get ahead....
YES markets are looking vulnerable these days.....
First 6 months have been incredible.....expect next 6 months to be challenging....
Market always digest gains which takes time....
Q 2 earnings report starts now, this means, those companies which beats will move UP sharply...those which misses will get clobbered....
Results should be evaluated carefully, sometimes, It gives great entry point.....
There will be pre-announcements starting Monday, but those will be sector & stock specifics...make good decisions based on those announcements...
Here is the current read of RSI :
JETS 72.16
Nasdaq 60.00
S&P 500 58.61
IWM 53.60
SOX 53.46
DOW 46.83
As you can see Airlines have done well, DAL looks very good BUT may be overbought....
Good luck with your own take on market and sectors.
BLOG does NOT give buy or sell.
Saleem
4 comments:
Hi Saleem,
Sold SCCO @ 71.06 on weak chart
I have my eye on another miner, but I want to see how the market develops a little more first.
Stocktrader
Hi Saleem,
Sold PINS @ 27.38 to take profits ahead of earnings
I fear the user growth will continue to disappoint, which could lead to another post-earnings decline.
Stocktrader
Hi Saleem,
Last week: +0.12% (YTD: +100.90%)
Notable Leaders: TYGO
Notable Laggards: HIMS
In a pullback week for the markets, the portfolio was flat thanks to the SQQQ hedging. As we await significant economic data this week, along with the start to earnings, I plan to raise some cash for opportunities and keep paying attention to charts. I am definitely net short right now, so I'll look for chances to trim short positioning along with the longs I already did.
Holdings (at this moment): SQQQ(x3) JETD TYGO BMEA HIMS TZA ZENV, cash 19%
Stocktrader
Hi Stocktrader,
Last week UP 2.88%
YTD UP 111.61%
Saleem
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