Is there a shift in US stock market.....

 The biggest question in majority of traders mind is very simple....what to do next....

Market is definitely trying to deal with "vaccinomics " which is deciding daily trading direction.

There is good news and bad news depending on where you have placed investment dollars.

Many traders were used to " follow the winners strategy " which worked pretty good from March to August.....

BUT...there is a change taking place....

Some are finding it hard to notice it...

Most traders are viewing this pullback as an opportunity to buy stocks on the cheap....

Many are viewing this pullback as a change in focus of many traders.....

High Frequency traders are getting out of " high flying quadrupling stocks as yesterday's story "

Most indices and stocks came very close to 50 DMA, in a full bloodbath they tend to go to 200 DMA or even lower......

IF & when there is a shift in HFT preference, you do not want to overstay your welcome, it generally becomes very painful to see your gains evaporate on a daily basis.

The question may be, how do I spot a change in HFT preference as I do not belong to that community like most of us.....very simply....by monitoring very closely internals of market on a daily basis.

Here is the real pulse of any market RSI and it is :

CCL             67.26

JETS            63.06

DOW           54.24

S&P 500      53.38

Nasdaq        51.28

SOX            50.58

GLD           48.97

TAN           48.79

IWM          46.69

XLE          37.35

NOW interpreting these numbers is generally based on your " time horizon and investing format " some are long term investors who diligently buy every month, for them these numbers do not mean much.

Short term traders, daytraders, swing traders have lot to worry about changing trends in market place.

RSI is telling us clearly that Cruise lines & Airlines have seen lot of inflows while Nasdaq where brunt of selling was felt have seen lot of outflows......

Verdict of market is clear cut, out of Nasdaq and into cruise lines, airlines and casino operators to name a few sectors, others like Hotels & Restaurants also getting inflows.....

Every market is very difficult to read and my summation may be very simplistic, but it has worked for me when I monitor RSI daily.

Good luck with your own interpretation of this TAPE and your own comfort level.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed