Rally to continue day 3...Yes!

It has been a long time since we rallied for 2 day in a row, but Friday's close @ high of the day and 2nd positive close gives lot of optimism.

Fed is all set to cut rates in October again.....

China & US trade negotiations have taken a more serious approach to get the deal done, expect positive tweets back to back instead of one positive and two negative....

Brexit issue is off the radar...

Iran confrontation heading towards some resolution....

Oil prices @ low low factoring worldwide slowdown...

India reducing interest rates repeatedly to boost their economy...

Gold may have seen their highs for 2 years.....

RSI in all major indices are @ bargain basement of 40 area....

RSI in SOX @ healthy 54.43..

Only Nasdaq and Russell 2000 below 50 DMA....

All in all we are looking at a " Northbound markets " going forward...

A good test of support generally take us down to 200 DMA area and break it for a day...this has occurred already.....

Can we hope for a series of new all time highs.....YES WE CAN......

Only serious uncertainty on the horizon is US political uncertainty with impeachment drums rolling...2nd whistleblower in focus....

And yes Hong Kong is still simmering with weekend protest.....

What will work in this environment " all boats will be lifted "

Supercharged will be SOX in this rally....

Chinese stocks may come alive again.....

Good luck with your own analysis and comfort level.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed