US Stock market which way?

US stock market has gone through extreme volatility in last 2 trading days.....

Technicians are rejuvenated in their extreme bearish thesis, all looking for short term weakness and have their own target as to how low we go.....

I am very comfortable when there is negativity, a perfect time to sift through opportunities.

Market will do what it needs to do

Stocks will do what it wants to do

Thus we have to balance negativity with opportunity......

BUT most traders and investors are always looking for " perfect environment with guarantee of UP move "

That ideal scenario never exists, thanks to Hedge fund strategy, analyst manipulation and company news......always challenging is the word.....

You have to figure out which sector / stock works for you.....

Here is the RSI picture to help you sort through broad market picture :

XLE              49.92

IWM             50.58

S&P 500      51.72

DOW           52.03

GLD           53.45

SOX           55.36

JETS         56.54

IF we look @ the above table, most maligned and hated sector is the strongest, so much for Wall Street wisdom.....YES i am highlighting JETS....Airlines are the strongest, probably will perform the best going forward, they have the-most positive leverage with an upturn in US economy.

Those @ home famous stocks are already @ or near all time highs and needs rest or sideways action.....

SOX is the most logical place to find good long term values as economy and their business gets on track.

Gold may need rest also as economic activity improves daily......fear subsides which takes away gold punch bowl.

Casino stocks are poised to do very well, from zero revenue to gradual picking up of disposable dollars.

Restaurant chains are in the same league from nothing to normalcy........

SO...think out of the " CNBC box " and make sound investment / trading decision....

Good luck with your own thesis and comfort level.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed