11:56
Unknown
Here we are with 7.4% YTD gains in S&P 500.......
Every trader is very comfortable with this market....
Every index is @ all time high or 14 year high....
BUT....there is a time for indices to pull back to regain its health & its uptrend...
RSI is @ 73.62....its in nosebleed territory.....anyone cares?
I am expecting a fast 3% pullback which "is imminent"
That will take S&P 500 down to 1925 area.......
In order to counter this downtrend some sectors looks prime for further move UP
They are out of favor & looked down sectors like Base Metals, Precious Metals......
Out of favor sector can offset some of the losses in Big cap techs & other in-favor sectors....
Interest rate jitters will cause this decline as highest jobs growth in 5 consecutive months since 1999 will take a toll in the form of higher mortgage rates & other consumer rates.
The other problem for this market are those traders & investors who sold out in 2008 do not trust equities. Every correction reinforces there belief in staying away from this casino.....
SO..it may not be a bad idea to book gains even small ones until we complete corrective process.
Old belief of earning season bullishness may not be the catalyst this time around until we correct.....they will say "good news already priced in"...or "guidance is in line or weak"
Good luck with your own read of this TAPE.
BLOG does NOT give buy or sell.
Saleem
Every trader is very comfortable with this market....
Every index is @ all time high or 14 year high....
BUT....there is a time for indices to pull back to regain its health & its uptrend...
RSI is @ 73.62....its in nosebleed territory.....anyone cares?
I am expecting a fast 3% pullback which "is imminent"
That will take S&P 500 down to 1925 area.......
In order to counter this downtrend some sectors looks prime for further move UP
They are out of favor & looked down sectors like Base Metals, Precious Metals......
Out of favor sector can offset some of the losses in Big cap techs & other in-favor sectors....
Interest rate jitters will cause this decline as highest jobs growth in 5 consecutive months since 1999 will take a toll in the form of higher mortgage rates & other consumer rates.
The other problem for this market are those traders & investors who sold out in 2008 do not trust equities. Every correction reinforces there belief in staying away from this casino.....
SO..it may not be a bad idea to book gains even small ones until we complete corrective process.
Old belief of earning season bullishness may not be the catalyst this time around until we correct.....they will say "good news already priced in"...or "guidance is in line or weak"
Good luck with your own read of this TAPE.
BLOG does NOT give buy or sell.
Saleem
Posted in: Mixed
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