What next for indices......

Indices are flat to sideways for the last 6 trading days, trend is decidedly of basing pattern.

Basing action was necessary to digest recent gains which has been stellar.....

Many are wondering about the direction of this market, thinking it has gone too far too fast.

Fear is a healthy ingredient of a bull market, this market is a strong bull market.

Famous strategist late Marty Zweig was "always worried about market" which keeps all of us trigger happy.

Sometimes holding the trigger is the-best approach as championed by Fidelity's Magellan Fund super investor Peter Lynch, who managed that fund from 1977 to 1990 and had annual return of 29.2% consistently...best performance in the entire world......no wonder he retired @ age 46 and wrote many books, most famous "One UP on Wall Street " & "Beating the Street"......something to read up and implementing.

OK ..where are we in indices, here are some of the stat :

Nasdaq is only 2.05% away from making all time highs

S&P 500 is only 2.14% away from new all time highs

Dow is only 3.12% away from making new all time highs

Here are RSI numbers :

S&P 500 @ 58.43

Dow @ 59.06

Nasdaq @ 61.79

As we are in the strongest seasonality in markets, there is a more riding on this market to make series of new all time highs.

Many strong stocks will surprise most of the traders as they stay out of best ideas, many stocks are in basing pattern and are getting ready to run......

SO...do not tinker with small profits and let the winner run until First week of January, then we will re-evaluate.

Sometimes markets are giving all the signals of strength and stability....but we fail to go beyond our own "fears & assumptions"

All the indices are primed for 70 RSI.........

Stay with strong ideas and some new stocks which are gathering strength...

Good luck with your own strategy and comfort level.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed