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10:03
Unknown
Many traders are fixated on Ukraine & Russian moves & fearing the worst.
Nasdaq is giving jitters to many as it trashes high beta stocks.
Much dreaded May is 72 hours away....
Sounds like a "logical sell in May has arrived"
BUT...logic do not work on Wall Street...
Emotions do work for a day or two.....
Lets look @ big picture.....
There are many "regional conflicts going on in this world"
Every so often those "regional conflicts flares UP"
Depending on the politics...reaction is either none to severe......
We may be witnessing an overreaction to Ukraine issue......
I personally believe that Ukraine issue will calm down shortly & some workable agreement may be in place to deal with issues.
World powers have a tendency to flex their muscle to assert themselves in world arena...but in the end it is the "economic costs which brings sanity"
Market may have reacted to obvious on Friday but TAPE may predict resolution starting Monday.....that is the nature of this beast.....
SO...many panicked on Friday on "World War 111" rhetoric.......but there is no world war 111 in the cards.....
All this panic was not reflected in VIX .....which mustered an anemic 5.56% gain on a troubled Friday...its high was 14.67 but closed @ 14.06........
When VIX does not panic...then traders should know that it is all "headlines" & media frenzy.....
Many are looking @ Nasdaq chart & worrying about "head & shoulder pattern"......every 90 days we have this pattern lurking but never comes to fruition.......
The real question is ..why S&P 500 & Dow chart is looking healthy.....any contradiction in pattern is resolved very quickly & majority rules....means IF Dow, S&P 500 & SOX looks healthy then Nasdaq will be pulled towards positive......
Nasdaq has suffered enormously due to high beta being slaughtered, still it has not breached any technical support....still above 4000, closing @ 4075.56....
SO..selling this May is not a good idea.......
We are on the verge of making news highs in S&P 500....
BLOG does NOT give buy or sell.
Saleem
Nasdaq is giving jitters to many as it trashes high beta stocks.
Much dreaded May is 72 hours away....
Sounds like a "logical sell in May has arrived"
BUT...logic do not work on Wall Street...
Emotions do work for a day or two.....
Lets look @ big picture.....
There are many "regional conflicts going on in this world"
Every so often those "regional conflicts flares UP"
Depending on the politics...reaction is either none to severe......
We may be witnessing an overreaction to Ukraine issue......
I personally believe that Ukraine issue will calm down shortly & some workable agreement may be in place to deal with issues.
World powers have a tendency to flex their muscle to assert themselves in world arena...but in the end it is the "economic costs which brings sanity"
Market may have reacted to obvious on Friday but TAPE may predict resolution starting Monday.....that is the nature of this beast.....
SO...many panicked on Friday on "World War 111" rhetoric.......but there is no world war 111 in the cards.....
All this panic was not reflected in VIX .....which mustered an anemic 5.56% gain on a troubled Friday...its high was 14.67 but closed @ 14.06........
When VIX does not panic...then traders should know that it is all "headlines" & media frenzy.....
Many are looking @ Nasdaq chart & worrying about "head & shoulder pattern"......every 90 days we have this pattern lurking but never comes to fruition.......
The real question is ..why S&P 500 & Dow chart is looking healthy.....any contradiction in pattern is resolved very quickly & majority rules....means IF Dow, S&P 500 & SOX looks healthy then Nasdaq will be pulled towards positive......
Nasdaq has suffered enormously due to high beta being slaughtered, still it has not breached any technical support....still above 4000, closing @ 4075.56....
SO..selling this May is not a good idea.......
We are on the verge of making news highs in S&P 500....
BLOG does NOT give buy or sell.
Saleem
Posted in: Mixed
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