Rally in full steam ahead........

Since 9th October to closing on 18th October, indices have rallied sharply, here are some stat to consider :

S&P 500 UP 4.71%

Dow ran up 1000 points in 4 days..is UP 5.50%

Nasdaq UP 6%

SOX UP 9.39%

Russell UP 13%

Here are RSI numbers:

Nasdaq 60.02

S&P 500 62.53

SOX 68.48

Dow 69.17

Russell 75.07

IF you look @ above stats, you will clearly see what has happened in last 8 trading days. When market is this euphoric, then it is hard to predict how far catch up trades will go.

These are unusual time for indices, as they are trying to adjust to new realities of massive infrastructure spending.

Last time this kind of infrastructure spending was proposed was the construction of interstate highway system by President Eisenhower, which brought fast commerce to each corner of USA.

It is almost impossible to quantify the extent of $ allocation @ this stage, but it will be massive.

There are many sectors which will benefit from aggressive expenditure by new administration.

Try to observe stocks which are flying, try to buy them on any sideways action.

Patience and conviction is required, when rotation is happening on a daily basis, IF you snooze, you will not lose.

Good times are here in market, good to be aggressive than conservative.

Good luck with your comfort level with this runaway TAPE.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed