Tough week ahead.....

Looking ahead is not a happy picture, here is RSI picture for some key areas :

RUT        52.75

XLE        64.82

S&P 500 70.40

Nasdaq   73.09

Dow       77.30

SOX       81.15

VIX         9.14

The above is a very clear picture of deeply overbought condition.....

It has been a very good year for most participants, so locking profit may not be a bad idea.

Waiting on sidelines for few weeks may work just fine.

We always have to watch overall market first, then where individual stocks are.

Even on crash day, few stocks are always UP, but 95% are down.

Playing with odds are always a good idea, currently odds are stacked against you.

Market needs a rest now, TAPE is overheated.....

BUT...IF you still want to stay involved, @ least reduce your exposure big time, like 25% exposure.

It is good to have discipline in investing, unless you are looking long term, means 2 years or longer.

When correction happens, it is going to be a painful one, long drawn out, like until next earnings report.

SO, please factor all of the above in your decision making, taking undue risk is not a good idea.

Good luck with your own strategy and comfort level.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed