US stock market is caught in an ongoing battle of 50 DMA.....so far it has overcome 50 DMA line many many times.....
BUT
IF we go below 50 DMA and head towards 200 DMA.....where Russell 2000 sits just above.....IT may not be the end of this world
This market have given its verdict, strongest stocks are thriving no matter what goes on charts...
This market is rewarding biggest and the best companies whose survival is never in doubt...
Instead of worrying about technicals in every tick, look for opportunities to make money depending on your trading style & focus....
IF you have proper weighting and good diversified portfolio, you may come out ahead even in this challenging market where yields are spiking UP...
Fed is caught in between high high yield and its balancing act of interest rate focus.....
I will not worry too much what yields are doing NOW...It IS getting priced IN fast......
Fed may say cautionary things in its policy statement which IS a given....
Try to look beyond next Fed meeting & its statement.....
Idea IS to make money in any given period....a week or 1 months and adjust accordingly....
Ironically, it IS NEVER smooth sailing on Wall Street...always some new challenges....
SO...always focus on how to make money or minimize losses on a week to week basis...
Some of the biggest gains on Wall Street is when nobody is expecting, thus stay in market with due diligence.
Here are some RSI numbers :
XLE @ 60.94
SOX @ 39.84
IWM @ 42.05
S&P 500 47.76
Nasdaq 46.61
DOW 48.24
Except for XLE all others are beaten down....
Good luck with your own take and comfort level.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hi Stocktrader,
Last week Down .55%
YTD UP 104.35%
Saleem
Hi Saleem,
Last week: -3.54% (YTD: +84.72%)
Portfolio Leaders: PLAY LYFT
Portfolio Laggards: IONQ TYGO BMEA PINS
It was a tough week for the portfolio in the midst of a fairly flat market. The smallest and most interest rate sensitive stocks took the biggest hit as rates crept higher still. As I look at some of the charts in my stocks, the damage recently has been very severe, and while this makes them candidates for bounces, they should probably be sold on that bounce - I hope I have the conviction to do so. The overall market has held up pretty well during this traditionally weak seasonal period, so I *am* still optimistic this base-building sets us up for a year-end rally. It is imperative to stick with strong stocks during this time, so I will take signals from the earnings season to decide on my final winners for the year.
Holdings: AGCO NVDA PINS LYFT PLAY TOST IONQ BMEA HIMS TYGO ZENV, cash 0%
Stocktrader
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