US stock market wants to go higher....

 US stock market is all set to go higher...

US stock market has gone through many digestive process...as listed below :

-Interest rate trend

-Fed tapering policy

-Inflation

-High Oil prices

-High Commodity prices

-Production issues

-Shipping issues

Most of the above issues have been in the forefront for many months and was impacting US stock market. Stock market jitters did affect Fed & other policy makers resulting in clarity and action.

All seems to have been discounted by zig zagging stock market action.

After all is said & done, US stock market has new emerging sectors as normalcy returns to the world and USA in particular.

Based on all technical indicators like RSI, 50 DMA & price action...XLE is a runaway leader. XLE is sporting an RSI of 74.70 and is @ highest level above 50 DMA and 7 year high in prices...

2nd biggest gainer lately is XLF famous financials as they say when " financials move higher market is looking @ new momentum "...RSI @ 62.87...move higher has just started...

XLB materials index is showing renewed strength with RSI @ 62.80...

TAN is 4th best performer based on RSI @ 60.99

Who could have predicted that none of the 3 biggest index DOW, S&P 500 & Nasdaq plus SOX will not make it to top 4 performing ever.....do not recall this happening ....

Worst yet Russell 2000 is way behind @ RSI of 56.12 in IWM....

How things have changed lately in US stock market..

Ironically SOX is the weakest of all sectors in my universe of 10 Index / Sectors with an RSI of 51.40

SO....please pay attention to this new reality of US stock market, it has changed drastically and new sectors as listed above are running away...

Gaming & Casino stocks are looking good especially MGM which made a new multi year high...part of my long term favorite stock always in my portfolio and have traded many times in this pandemic.

Bitcoin to $100,000 is a foregone conclusion.....it was around $27000 not too long ago....

Sometimes Wall Street wisdom does not hold true...so adjust very quickly to new TAPE...

Good luck with your own thesis and comfort level...

BLOG does NOT give buy or sell.

Saleem

Indices closed UP .50% to 1.09%...NICE !!!

 Indices closed UP. S&P 500 is well above 50 DMA and confirming a huge reversal. Most sectors were strong while FB sat in the dust again.

S&P 500 @ 4471.37, high 4475.82, low 4447.69

RSI @ 58.39

CMF @ -0.066

Internals were :

UP volume led by 1.61 to 1 in NYSE & 1.14 to 1 in Nasdaq

Advancing stocks led by 1.11 to 1 in NYSE & .82 to 1 in Nasdaq

Net new 52 wk highs were leading by 232 in NYSE & 92 in Nasdaq

VIX Down 3.32% @ 16.30

Oil @ $82.28

Gold @ $1768.30

Canadian $ @ .7610

Stocks which were UP 1% or more included HST RIOT XPEV

NIO TSLA GE TECK COIN M TSM QCOM AAL LAC JKS

MSTR CSIQ LYFT UBER OENN SHOP MTCH UPS JWN 

SLB LNG MARA MA MS AMZN V M.....

Here is my portfolio weighting :

HST      23.61%

CNX     21.75%

MGM   18.74%

UAL    11.26%

XPEV    7.80%

RIOT     6.53%

NCLH   6.22%

SOL      4.09%

Next post by 6 PM on Sunday.

BLOG does NOT give buy or sell.

Saleem

Indices closed UP 1.56% to 1.73%....NICE !!!!

 Indices closed UP.

S&P 500 @ 4438.26, high 4439.73, low 4386.75

RSI @ 55.00

CMF @ -0.164

Internals were :

UP volume led by 3.81 to 1 in NYSE & 1.90 to 1 in Nasdaq

Advancing stocks led by 3.58 to 1 in NYSE & 1.96 to 1 in Nasdaq

Net new 52 wk highs were leading by 176 in NYSE & 55 in Nasdaq

VIX Down 9.55% @ 16.86

Oil @ $81.31

Gold @ $1797.90

Canadian $ @ .7634

Portfolio CNX HST MGM XPEV NCLH RIOT SOL UAL

Stocks which were UP 1% or more included HST RIOT

HOOD AFRM CGC MU LULU AG BB APA LSPD

COIN M X TSM AAPL PYPL MRVL QCOM CNQ

SNAP SWKS FCX DASH AMD GAN MSFT TOL

NXPI CRWD ESTC KBH NVDA TWLO LRCX

GOOG SLB MS ULTA....

AH Futures UP

AH Asian Markets Mixed

AH Oil UP

AH Gold Down

About market, TAPE was strong and closed @ high of the day. Key indices have conquered key resistance level, expectations / momentum should pull all indices into strong technical level. SOX did very well despite gloomy prediction of chip shortages which TSM guidance does not confirm. Many sectors participated in today's rally.

BLOG does NOT give buy or sell.

Saleem

Indices closed mixed...

 Indices closed mixed.

S&P 500 @ 4363.80, high 4372.87, low 4329.92

RSI @ 45.79

CMF @ -0.188

Internals were :

UP volume led by 1.43 to 1 in NYSE & 1.74 to 1 in Nasdaq

Advancing stocks led by 1.73 to 1 in NYSE & 1.40 to 1 in Nasdaq

Net new 52 wk high were leading by 35 & lows by 4 in Nasdaq

VIX Down 6.10% @ 18.64

Oil @ $80.44

Gold @ $1794.70

Canadian $ @ .7547

Portfolio CNX HST MGM XPEV NCLH RIOT SOL UAL

Stocks which were UP 3% or more included SOL XPEV

AFRM LULU AG CCJ BB LSPD BMBL LAC MGNI

FUBO FCX AI SNOW ZI PLAN SHOP ZM CRWD

ESTC DDOG PDD BZUN TWLO AEM SPLK

API AMD MARA.....

AH Futures UP

AH Asian Markets Mixed

AH Oil UP

AH Gold Down

About market, TAPE closed mixed which is a victory as Fed minutes confirms tapering starts in 30 days which market wanted confirmation. Canadian bankers are also worried about inflation and are voicing concern / disagreement with Central Bank policy. Technology stocks came back to life after being deeply oversold.

BLOG does NOT give buy or sell.

Saleem

Indices closed down .14% to .34%......

 Indices closed down.

S&P 500 @ 4350.65, low 4342.09, high 4374.89

RSI @ 43.91

CMF @ -0.177

Internals were :

UP volume led by 1.15 to 1 in NYSE & 1.94 to 1 in Nasdaq

Advancing stocks led by 1.38 to 1 in NYSE & 1.42 to 1 in Nasdaq

Net new 52 wk high were leading by 15 in NYSE & lows by 59 in Nasdaq

VIX Down .75% @ 19.85

Oil @ $80.64

Gold @ $1759.30

Canadian $ @ .7556

Portfolio CNX HST MGM XPEV NCLH RIOT SOL UAL

Stocks which were UP 1% or more included MGM NCLH SOL UAL

AFRM AG CCJ TECK SQ APA M X BYD JBLU BMBL FSLR

RUN ENPH SEDG CSIQ JKS SPWR RCL CCL WYNN LVS 

SNAP PAAS LAC MGNI PENN MTCH CRWD ESTC DDOG

BYND QS NKE....

AH Futures Down

AH Asian Market Mixed

AH Oil Down

AH Gold UP

About market, TAPE opened higher but lost steam by close and closed lower. Market is waiting for Fed to deal with runaway inflation which seems to be getting some attention. Fed minutes will be released by 2 PM and will provide some insight to their voting pattern, any majority agreement to deal with inflation may spark a rally.

BLOG does NOT give buy or sell.

Saleem

Indices closed down .64% to .72%.....

 Indices closed down.

S&P 500 @ 4361.19, low 4360.59, high 4415.88

RSI @ 45.08

CMF @ -0.187

Internals were :

Down volume led by 1.59 to 1 in NYSE & .94 to 1 in Nasdaq

Declining stocks led by 1.38 to 1 in NYSE & 1.68 to 1 in Nasdaq

Net new 52 wk high were leading by 106 in NYSE & lows by 63 in Nasdaq

VIX UP 6.55% @ 20.00

Oil @ $80.52

Gold @ $1755.70

Canadian $ @ .7520

Portfolio CNX HST MGM XPEV NCLH RIOT SOL UAL

Stocks which were UP 1% or more included RIOT SOL

SU CNQ SLB LNG CCJ TECK FCX CLF MSTR

RUN SPWR JKS ENPH DSEDG DKNG PANW 

ESTC DDOG EAT AMAT BABA LVS....

AH Futures Down

AH Asian Markets Down

AH Oil & Gold Down

About market, TAPE did a reversal to the down side and closed @ low of the day, not a good technical indicator for US market. Market firmly believe Fed has lost the battle for inflation and is way behind in its policy to contain inflation. I do not have good feeling for October in terms of market direction, it is downhill. Oil prices are scaring everyone with $80+ oil prices as it impacts inflation in a big way.

BLOG does NOT give buy or sell.

Saleem

Two tales of US Stock market.....

 US stock market has 2 personality...

Split personality involves XLE, JETS & IWM

Nasdaq & SOX has a " problem "

US stock market has shifted into " restart mode " in a big and decisive way...

XLE / Energy related stocks are a huge success story, sporting an RSI of 73.53...a number not predicted & hoped for by many famous pundits.....

Nasdaq & SOX are really struggling with RSI of 44.21 & 41.02...this after rally of many days........

JETS has an RSI of 53.92 higher than best of big 3 DOW @ 52.30

Numbers do not lie.....ever

S&P 500 RSI @ 48.49 still below 50 where most traders jump in with ascending formation....

In case my point is not very clear XLE has made a new high with Oil & Natural gas @ 7 year high...

Most trading accounts are playing catchup and are not sure what to do now....

My suggestion to all traders / investors is to have exposure in both which means Oil stocks and Natural Gas stocks plus refiners / Integrated oil companies...

Another exciting area in Oil / Gas is junior exploration companies...which can jump 10 fold based on their discovery and production profile.

Gaming / Hotels are another exciting area with "reopen theme "...they are marking time to make another move higher....

SO...lot of exciting opportunity in many reopen theme and should be in every portfolio.

Good luck with your own analysis and comfort level.

BLOG does NOT give buy or sell.

Saleem