US stock market is testing major support in the 200 DMA area some are even in death cross zone.
High high interest rates is playing havoc with US stock market resulting in breaking key support...
Is this all an overreaction to surge in treasury rates?
No matter what, current level of key Indices are raising major alarm in the mind of traders and investors.
Here is the current RSI read :
XLE 53.08
SOX 37.35
Nasdaq 36.46
DOW 35.75
S&P 500 35.37
XLF 33.39
IWM 32.57
TAN 27.84
As you can see Energy is the big standout in this turmoil, It IS above both 50 DMA & 200 DMA
TAN / Solar stocks have been decimated by demand / pricing issues is below 50 DMA & 200 DMA plus made a new 2023 low...
IWM / Russell 2000 not only is below both 50 DMA & 200 DMA but is flashing " death cross "
S&P 500 / DOW & Nasdaq are in bargain bin, with Nasdaq still above 200 DMA & DOW is deep deep below 200 DMA
Current state of the market requires patience / conviction.....when this market turns UP...expecting Nasdaq to outperform big time...
This week many big guns are reporting including my holding META on Wednesday after close, expecting a solid report & guidance....
Good luck with your own analysis & comfort level.
BLOG does NOT give buy or sell.
Saleem
5 comments:
Hi Stocktrader,
Last week Down 3.78%
YTD UP 84.10%
Saleem
Hi Stocktrader,
Added 100% PLTR @ $15.83 in pre market....
Saleem
Hi Stocktrader,
Added 25% NVDA in Toronto @ $39.17
Saleem
Hi Saleem,
I apologize for the delay as I have been very busy today post-vacations.
Last week: -3.21% (YTD: +56.85%)
Portfolio Leaders: PLAY SNAP ZENV
Portfolio Laggards: TYGO IONQ NVDA AGCO HIMS
In another down week for the markets, the portfolio performed poorly again due to severe weakness in some more speculative stocks. At this point, I feel interest rates have overshot to the upside and expect some moderation from here as economic conditions weaken somewhat, but hopefully not enough to do serious damage. Although I think we have the potential for upside into year end given the peak in rates, I am starting to fear collateral damage from the very sharp rise in some sectors. We will have to see how that plays out over coming months. For now, the focus is on earnings reports continuing this week.
Holdings: LYFT(1.5x) SNAP PLAY NVDA AGCO PINS HIMS IONQ TYGO(0.6x) ZENV(0.3x), cash 0%
Stocktrader
Hi Saleem,
Good luck with the adds! Relative strength should win nicely into year end.
Stocktrader
Post a Comment