11:30
Unknown
All three major indices were UP 5 weeks in a row, all indices are sitting @ new all time highs or new 14 year high for Nasdaq......
RSI sitting @ 66.37
CMF @ 0.342.....
BUT bears are only @ 13.3%......
Bulls @ 56.1%
Based on all of the above we definitely have "amber light flashing"
This means that we are getting "overbought".......
We may have 1 more day of UP move...then RSI may hit 72 area where it has turned markets lower every time......
Many optimists may like to say "its different this time"......but it never is...72 RSI means trouble for market.
Bulls @ 56.1% means when we go over 60...again heading for trouble.....
NO you must not sell everything ....BUT it is good to know we may be heading lower in indices & be ready for it......
Some may sell all profitable position
Some may take a short approach
Some may do covered call
Some may do absolutely nothing.....
It is all about your own comfort level & your strategy.....some strategy is extremely short term like traders of this BLOG & some may look @ long term.....
BUT it is important to know that last time when we corrected in 1st week of August ( 4 weeks ago) we came above 30 in RSI......& it took 10 trading sessions to get to low & find support......S&P 500 lost 4.35%......
I guess...i have written enough to do some planning for short term strategy?
BLOG does NOT give buy or sell.
Saleem
RSI sitting @ 66.37
CMF @ 0.342.....
BUT bears are only @ 13.3%......
Bulls @ 56.1%
Based on all of the above we definitely have "amber light flashing"
This means that we are getting "overbought".......
We may have 1 more day of UP move...then RSI may hit 72 area where it has turned markets lower every time......
Many optimists may like to say "its different this time"......but it never is...72 RSI means trouble for market.
Bulls @ 56.1% means when we go over 60...again heading for trouble.....
NO you must not sell everything ....BUT it is good to know we may be heading lower in indices & be ready for it......
Some may sell all profitable position
Some may take a short approach
Some may do covered call
Some may do absolutely nothing.....
It is all about your own comfort level & your strategy.....some strategy is extremely short term like traders of this BLOG & some may look @ long term.....
BUT it is important to know that last time when we corrected in 1st week of August ( 4 weeks ago) we came above 30 in RSI......& it took 10 trading sessions to get to low & find support......S&P 500 lost 4.35%......
I guess...i have written enough to do some planning for short term strategy?
BLOG does NOT give buy or sell.
Saleem
Posted in: Mixed
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