Market direction vs stock movement......

Market has been strong until it hit RSI 70 area......

Market needs few days of rest to catch its breadth.....

200 DMA is support for all indices...

This rest is needed to mount a challenge to all time high in all indices....

Following are max support point for indices :

S&P 500  <73 .13=""></73>

Dow        <85 .66=""></85>

Nasdaq   <118 .06=""></118>

Pullbacks are needed and is considered healthy in an uptrend....

Many stocks are ready to move UP as their earnings report are released....

For me FIT on Monday and FB on Wednesday....hoping they are positive and reaction is strong post earning.....

For every bad earning report, there has been many strong ones, it is OK to take earning risk in this environment, IF it is better than expected, jump is anywhere from 10% to 15%......should make up for any bad ones.....

When you are exposed to Wall Street , risk is always there, that is part of the game, you cannot be safe on Wall Street, risk & reward we do not control......

Market has been surprisingly good and may continue after mini rest.

RSI in high 50's are OK in a strong market.....

Currently RSI in Indices as as follows :

Nasdaq    64.38

S&P 500 64.54

Dow        66.25

Dow is the strongest, but Nasdaq can catch up in a hurry......

When TAPE is as strong as past several weeks, it is prudent to stay with maximum exposure, market may correct a bit , but your portfolio may move higher, IF you have stocks which are outperforming.

In conclusion, there are times, when you have to be optimistic, these are such times.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed