US Stock market @ crossroad......

 Much has changed lately in US stock market....

Interest rates are rising faster than expected...

FANG has lost its strength...

TSLA slumped 24%...

Nasdaq below 50 DMA

TAN / Solar ETF is below 50 DMA

Leadership of stock market is in Airlines, Energy....

The above was not factored by majority of traders or institutions

Everyone is waking up to new reality, that old strategy is failing badly

Here is a look @ RSI for further verification :

JETS             68.31

XLE              63.77

XLF              59.07

SOX             50.35

IWM            50.05

DOW           45.24

S&P 500     43.50

Nasdaq      40.18

TAN           40.26

Anyone can clearly see how leadership in US stock market has changed, weakest sector is TAN, Nasdaq, S&P 500 & DOW....who could have predicted this change so fast......

Airlines and Energy stocks are sitting pretty @ top 2 sectors to be in......many cannot make this change as they are too used to technology day & night......

Markets do change, smart Investors & traders adjust or anticipate coming changes....

DOW & S&P 500 are barely sitting above 50 DMA...a negative open is all its going to take to bring DOW & S&P 500 into below 50 DMA to join Nasdaq....

The above scenario is a reality, not a very healthy picture " technically speaking "

Market does not have any catalyst to power UP only Negatives are lurking....

Please do your own due diligence and act defensively, any bounce needs to be sold, any profit needs to be taken....

Good luck with your own analysis & comfort level.

BLOG does NOT give buy or sell.

Saleem

Indices closed mixed....

 Indices closed mixed with DOW slumping @ close, technically not a good thing, It was a sharp dive in last 15 minutes, does not bode well for Monday's open.

S&P 500 @ 3811.15, low 3789.54, high 3861.08

RSI @ 43.50

CMF @ 0.152

Internals were :

Down volume led by 3.11 to 1 in NYSE & 1.29 to 1 in Nasdaq

Declining stocks led by 1.56 to 1 in NYSE & 1.71 to 1 in Nasdaq

Net new 52 wk lows were leading by 6 in NYSE & 81 in Nasdaq

VIX Down 2.18% @ 28.26

Oil @ $61.50

Gold @ $1728.80

Canadian $ @ .7295

Stocks which were UP 2% or more included MRVL

MGM VUZI TWTR WYNN QRVO SNAP CCL

MSTR RUN AMD DKNG JKS CSIQ PENN

MU NXPI SHOP ROKU TOL ZM CRWD

ESTC KBH ENPH NVAX SEDG MRNA

TER NCLH DHI PHM VICR TWLO

LRCX AMAT MGA CMG.....

In my portfolio :

Added 30% SU @ $20.17

Sold FSLR @ $81.00 in after hour....

Here is my portfolio weighting with 70% exposure :

SQ         31.67%

AAPL    25.02%

MRVL   23.25%

SU       11.21%

CNX     8.85%

Next post by 6 PM on Sunday.

BLOG does NOT give buy or sell.

Saleem

Indices closed down 1.75% to 3.52%.......

 Indices closed down.

S&P 500 @ 3829.34, low 3814.04, high 3925.02

RSI @ 45.76

CMF @ 0.167

Internals were :

Down volume led by 5.36 to 1 in NYSE & 4.96 to 1 in Nasdaq

Declining stocks led by 6.71 to 1 in NYSE & 7.33 to 1 in Nasdaq

Net new 52 wk highs were leading by 250 in NYSE & 158 in Nasdaq

VIX UP 35.38% @ 28.89

Oil @ $63.53

Gold @ $1715.40

Canadian $ @ .7469

In my portfolio :

Sold BB in last few minutes of closing @ $10.50

Bought SU @ $20.85

Portfolio AAPL CNX FSLR MRVL SQ SU

Stocks which closed green included TWTR MRNA PFE

IQ BZUN FFIV GME IRBT ORCL M....

AH Futures Down

AH Asian Markets Down

AH Oil & Gold Down

About market, TAPE was in deep selling frenzy due to 10 year yield of 1.52%. There was no place to hide anywhere Sell Sell Sell was the theme by everyone. Nasdaq closed below 50 DMA. DOW, S&P 500, SOX & IWM were above 50 DMA. Based on RSI stated above we may need to go below 40 to ensure a firm bottom.

BLOG does NOT give buy or sell.

Saleem

Indices closed UP .99% to 1.35%....NICE !!!!

 Indices closed UP.

S&P 500 @ 3925.43, high 3928.65, low 3859.60

RSI @ 61.41

CMF @ 0.157

Internals were :

UP volume led by 3.28 to 1 in NYSE & 3.19 to 1 in Nasdaq

Advancing stocks led by 2.09 to 1 in NYSE & 2.59 to 1 in Nasdaq

Net new 52 wk highs were leading by 490 in NYSE & 345 in Nasdaq

VIX Down 7.66% @ 21.34

Oil @ $63.22

Gold @ $1797.90

Canadian $ @ .7459

In my portfolio :

Sold SU @ $21.57 in after hours

Added 70% CNX @ $13.30

Portfolio AAPL BB CNX FSLR MRVL SQ

Stocks which were UP 3% or more included BB CNX

ACB AG QRVO PAAS SWKS APA TECK AAL NIO

MGNI RIOT MSTR RIDE SPWR CSIQ GOOS ZI

TOL HST ENPH CVX KRA TER NCLH BA LSCC

ASML TSLA LRCX UAL AMAT GME OXY SLB

JKS MU MA MS V X TLRY....

AH Futures Mixed

AH Asian Markets UP

AH Oil UP

AH Gold Down

About market, TAPE closed strong near high of the day, Internals were Strong. Many sectors participated in today's rally. Oil made another 13 month high indicating economic revival is in full swing. Airlines, cruise lines, energy all were leaders in gains.

BLOG does NOT give buy or sell.

Saleem

Indices closed mixed....

 Indices closed mixed.

S&P 500 @ 3881.37, high 3895.98, low 3805.59

RSI @ 54.83

CMF @ 0.063

Internals were :

Down volume led by 1.03 to 1 in NYSE & 3.38 to 1 in Nasdaq

Declining stocks led by 1.58 to 1 in NYSE & 2.61 to 1 in Nasdaq

Net new 52 wk highs were leading by 234 in NYSE & 161 in Nasdaq

VIX Down 1.45% @ 23.11

Oil @ $61.67

Gold @ $1805.90

Canadian $ @ .7388

Portfolio AAPL BB CNX FSLR MRVL SQ SU

Stocks which closed green included CNX FSLR SU

MGM WYNN TWTR SNAP APA CNQ AAL CCL

PINS SPWR MU INTC PENN ZI TOL DAL MTCH 

UBER TD BMO ENPH JD CVX SEDG DHI PHM 

IQ LULU BZUN TWLO FB AMZN UAL AMAT

GOOG NFLX LNG YELP LVS MA V M.....

AH Futures UP

AH Asian Markets Mixed

AH Oil Down

AH Gold UP

About market, TAPE was in a freefall on yield & inflation jitters which Fed addressed in a convincing manner in testimony. Market did a very convincing V shape UP move getting green all over except in Nasdaq closing number. In my opinion, technology is back in vogue and may outperform in the near term. XLE made a new high today while other Indices were struggling.

BLOG does NOT give buy or sell.

Saleem

Indices closed mixed....

 Indices closed mixed.

S&P 500 @ 3876.50, low 3874.71, high 3902.92

RSI @ 54.03

CMF @ 0.072

Internals were :

Down volume led by .80 to 1 in NYSE & 1.68 to 1 in Nasdaq

Declining stocks led by 1.13 to 1 in NYSE & 1.62 to 1 in Nasdaq

Net new 52 wk highs were leading by 434 in NYSE & 351 in Nasdaq

VIX UP 6.35% @ 23.45

Oil @ $61.49

Gold @ $1808.40

Canadian $ @ .7390

In my portfolio :

Sold MGM @ $37.60 in closing minutes

Bought SQ @ $267.70 in closing minutes

Added 130% CNX @ $13.04 in closing minutes

Portfolio AAPL BB CNX FSLR MRVL SQ SU

Stocks which closed green included SU MGM

WYNN LVS AG PAAS APA CNQ TECK AAL

CCL MGNI SCHW FCX CLF IBM GOLD DAL

CVX EAT KRA ELF NCLH AEM UAL OXY

SLB YELP V X M ULTA MA MGA ORCL...

AH Futures UP

AH Asian Markets UP

AH Oil & Gold UP

About market, TAPE was in a deep slump on rising rates. Technology took it on the chin and oil roared higher giving energy stocks big boost. Gold & Silver also were UP along with base metals. Gaming, Airlines & Cruise lines were cruising @ full speed. Bit coin  were in sell sell mode. Rotation were in full swing.

BLOG does NOT give buy or sell.

Saleem

US Stock Market in sector rotation mode.....

 Rotation is the name of the game in US stock market.

You may be very surprised which sector is the strongest NOW....

Nasdaq, Russell 2000 is resting a bit

Here are the RSI numbers for our discussion :

XLE        65.36

SOX        63.61

IWM       63.47

DOW      61.91

Nasdaq   60.69

S&P 500 60.20

SLV        55.09

TAN       45.89

As you can clearly see XLE energy stocks are performing the-best in number one spot, many traders are ignoring this biggest beneficiary of reopening world economy.

Biggest bargain is TAN solar stocks have corrected all the excess and may be ready to move higher.

SLV or silver stocks may be the big wild card now as it is an industrial metal used in many many application.

All base metals are @ 9 year high.

Lumber @ 9 year high

Economy is going to come alive sooner than expected.

Biggest gains have been in non technology stocks and going forward

Technology may have to fight for 3rd or 4th best idea

Markets go through many changes, currently writing is on the Wall & Broad street...it is the base metals, lumber, energy, casino stocks fighting for number 1 spot...

Many traders are technology focus, that needs to be changed as of November election....many new ideas are being floated around, infrastructure, energy could do well.

Worldwide there is a housing boom due to work from home which is being accepted for all time, a shift which has been played out in stay home stocks.....

Bill Gates a promoter of science / medicine is predicting almost normalcy by September 2021 which is only 6 months away......

Trips to Las Vegas, Macao & Singapore casinos may be the biggest beneficiary IF rules are relaxed due to containment of COVID-19

Please adjust your trading strategy to benefit from rolling the dice on economic resurgence.

Good luck with your own strategy & comfort level.

BLOG does NOT give buy or sell.

Saleem