12:07
Unknown
TAPE has gone through spirited buying in last 3 weeks of February and made series of all time highs in Dow & S&P 500 while Nasdaq is 45 points away from magic 5,000......
Here is the read on RSI in the above index :
Dow @ 62.23
S&P 500 @ 64.07
Nasdaq @ 70.02
In any market, it is important to keep an eye on potential headwind.
We have reacted to many positive development like Greece debt extension & Ukraine agreement.
We need to digest gains and build another base to move from.
Oil is behaving much better than some Wall Street hedge funds like to see, this is a huge positive for many oil producers.
Gold could be the biggest beneficiary of upcoming base building in equities.
Russell which is @ all time high also may have more upside while Nasdaq rests.
Many security stocks are "dangerously overbought"...correction may be severe.
US$ resurgence is creating havoc in many economies and is forcing many countries to devalue their currency, US$ strength is taking a toll in earnings of many multinationals as they report their earnings in US$.....they have to convert foreign earning which are weaker currencies into strong US$, so they get less US$ than before.....
It is important to book gains ASAP as market pulls back to get rid of exuberance & euphoria.
Look for weaker stocks with good potential to buy on weakness.
Do more research to find stocks with better potential.
We may see end of the month selling to lock gains by hedge funds.
All in all, we may be looking @ couple of weeks of weaker tape.
BLOG does NOT give buy or sell.
Saleem
Here is the read on RSI in the above index :
Dow @ 62.23
S&P 500 @ 64.07
Nasdaq @ 70.02
In any market, it is important to keep an eye on potential headwind.
We have reacted to many positive development like Greece debt extension & Ukraine agreement.
We need to digest gains and build another base to move from.
Oil is behaving much better than some Wall Street hedge funds like to see, this is a huge positive for many oil producers.
Gold could be the biggest beneficiary of upcoming base building in equities.
Russell which is @ all time high also may have more upside while Nasdaq rests.
Many security stocks are "dangerously overbought"...correction may be severe.
US$ resurgence is creating havoc in many economies and is forcing many countries to devalue their currency, US$ strength is taking a toll in earnings of many multinationals as they report their earnings in US$.....they have to convert foreign earning which are weaker currencies into strong US$, so they get less US$ than before.....
It is important to book gains ASAP as market pulls back to get rid of exuberance & euphoria.
Look for weaker stocks with good potential to buy on weakness.
Do more research to find stocks with better potential.
We may see end of the month selling to lock gains by hedge funds.
All in all, we may be looking @ couple of weeks of weaker tape.
BLOG does NOT give buy or sell.
Saleem
Posted in: Mixed
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