Tale of two markets.....continues!

It has been a tale of 2 different markets, there is Dow Jones Industrial Average of 30 stocks, and other 20,000 stocks.

Dow is making series of new all time highs 8 in a row continues.....

While other indices or index are struggling big time....

Here is a snapshot of market, based on RSI :

Dow Jones     76.96

TAN (solar)   70.72

S&P 500        62.79

Nasdaq          56.22

XLE              50.03

SOX              46.74

RUT              44.77

As you can see that Dow is the undisputed leader in being UP the most and small cap Russell is struggling big time.

This market is totally lopsided, which i have observed in a long time.

Solar has rewarded those who timed it well.

Nasdaq which is widely followed, speculated and loved is trailing.

SOX has been a major disappointment for thousands of traders / investors.

I definitely see Dow being " dangerously overbought " and is due for pullback....

Nasdaq may play catch up, BUT IF Dow is pulling back, Nasdaq may fall more.....

Earning season is winding down, which may leave markets without any catalyst.

There are few earnings which i am following due to my exposure or potential exposure :

Wednesday  AM WB

\Wednesday PM NTES

Thursday     PM NVDA

WB is expected to beat earnings estimate.

NTES has done well and beats EPS handily, i may buy NTES before earnings.

NVDA also beats, it has moved UP substantially already......

Good luck with your own market analysis and earnings reaction.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed