Can we rally from here...YES!

Indices had it with daily tweet and new threats to technology stocks for months.....

Can stocks climb "wall of worries "

Everything Chinese are being knocked to a bargain level....

Remember there are courts to deal with " stupidity of highest order "

Courts like Supreme court, International trade court and court of public opinion....all can revert everything in a hurry....

Lets look @ market through the eyes of RSI :

NASDAQ           42.55

RUT                    45.52

SOX                    47.85

S&P 500             48.66

DOW                  51.67

XLF                    57.60

As you can clearly see when we see low 40's in RSI...we are deeply oversold.....NASDAQ IS.....

XLF which reflects financials are the strongest group.....things cannot be that bad when Banks and Brokerages are the-best performing group.

Only Nasdaq & RUT are below 50 DMA.......

VIX @ 17.22... means....we can rally....IF tweets are stopped for 1 trading day.....

Chinese stocks will snap back fastest from deeply oversold conditions, world 2nd largest economy which is China....is NOT FLUFF..it is real and better performing for last 15 years......troubling / slowing economy are everywhere else......

SO...it is time to buy the weakness for a very quick and profitable trade.....

Deeply oversold equals buying opportunity......

Need I say more......

Good luck with your own strategy and comfort level.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed