New all time highs...YES!!!

YES....It was a banner week for US stocks market....new all time highs allover....

New all time highs started with SOX

Followed by S&P 500

Followed by Nasdaq

NOW...we are all set to conquer new all time highs in :

XLF.....Financial ETF only .20 away

DOW....Famous Dow 30 stocks only 53 points away

The ONLY laggard is Russell 2000 which is 192 points away or 11.02%.....maybe 2 weeks worth of UP move.....only bargain left in market......

Here is the RSI reading :

XLF         68.55

S&P 500  66.56

Nasdaq     65.51  

SOX         64.16

DOW        62.81

RUT          59.36

RSI is showing that we have not reached deeply overbought condition as we have not touched 70 area yet. In strong markets, we have seen RSI go as high as in 80+++then we start corrective process, sometimes correction or pullback go in stages.

Pullbacks or correction can be as low as 2% or 3% as stage 1 pullback....then another run @ new highs.......

Serious pullbacks are normally 5%......then another run to new all time highs

Finally when last stage correction comes, then market pulls back as much as 10% area.....

It IS almost dart throwing stage in market now, where it sticks, that stock goes UP

ALL BOATS ARE LIFTED......

Good to be in market in strongest quarter of the year, famous 4th Quarter......

SO...trade it....book profit...rotate into laggards....all strategy seems to work....

My recommendation is to stay with the winners as they keep making series of new highs and buy some laggards.....

Good luck with your own strategy and comfort level.....

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed