Can stock market regain its momentum.....

Stock market has been outperforming since October.....

There has been one pullback to support in January....

Corona Virus related pullback is only 2 days old.....

The question which everyone is struggling with, is this the start of much needed pullback / correction.

Many pundits / technicians have weighed in with mixed conclusions....

Some always go with the flow ...IF negative yesterday...then they warn you to be careful....

BUT IF we rally next day......drum roll for happy days are here.....

I personally believe that TAPE is trying to discount Corona Virus impact to world economies....

My personal take is ....things are getting back to normal in China which took two weeks further into their new year....how do i know..... had ordered couple of electronics items from AliExpress, one has been delivered in Canada and other one is shipped.....

We may have been caught with overreaction to Japan situation, with 20/20 hindsight, it could have been handled differently instead of being holed up inside ship.

Gold may have played its hand already and may need well deserved rest.

When I am looking @ RSI following picture emerges :

SOX              48.73

DOW            48.92

IWM             52.70

S&P 500       53.66

Nasdaq         55.92

SLV              63.83

GLD             78.99

SOX and DOW are looking oversold, except for Silver & Gold  everything has pulled back.

Strongest stocks can be bought on 5% to 10% pullback which has occurred already....

Taking a position with conviction can be rewarding @ this stage.

AMD, MU, ROKU, BYND, LYFT has good risk / reward ratio.

Good luck with your own analysis & comfort level.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed