TAPE struggling with 50 DMA.......

Since October of last year all indices have breached 50 DMA repeatedly but have managed to come back above every time, 

Currently Dow & S&P 500 are below 50 DMA and Nasdaq is above by 30 points.

TAPE is under severe pressure due to ongoing Greece non resolution of its debt crisis.

IF Greece defaults and leaves EU, then its going to take a huge toll in worldwide indices, this is not something which has been factored in @ this stage.

Fed is meeting this week and its policy announcement on Wednesday will be routine like "watching data & no action on interest rates"...this may help market sentiment.

BUT indices will struggle, until Greece issue moves towards an expected resolution.

Because of this 1 issue, which has hijacked market trend, it is important to have a long term view, eventually Greece will be resolved one way or the other.

TAPE has been split into strong stocks and weak stocks, strong stocks are hitting all time highs while weak ones are struggling in a narrow range.

I will recommend, to move into better performing stocks.

Do not expect too much until Greece issue is settled.

Stay in a diversified portfolio.

Here is my weighting :

LULU 24.76%

GPRO 19.89%

BBRY 14.00%

VDSI  12.06%

SWIR 11.67%

RAD  10.23%

AKS    7.41%

Exposure 272%

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed