TAPE overbought near term.....

TAPE got all the positive news in all issues, Fed was supportive, Scotland gave a decided NO & BABA hype is alive & well......no wonder Nasdaq reversed & closed weak on Friday.


Now we are entering digestive phase for all the good news we got.....


We may correct to 2000 which is first support, to all the way down to 1950 which is a correction of 69.26 points or 3.43% from high of 2019.26 in S&P 500....


We may be looking @ 2 weeks of weaker action in TAPE, form week of October 6th, we may be looking @ stability to higher TAPE action.....


Many sectors are overbought, thus reversed on Friday.


This TAPE has been very profitable for many, thus it is important to be ready for a pullback.


Booking profit is the best strategy.....


Pruning weaker performer is a smart strategy..


Buying strong stocks on weakness is a good move


Overall, not many changes should be made in Portfolio, as this TAPE has surprised everyone with short weakness & UP move soon afterwards.....


Mid October to Mid January is the strongest period for stocks.......


SO...take everything in stride for next 2 to 3 weeks......


Strongest three months in stock markets are coming your way....


Good luck with your strategy !


BLOG does NOT give buy or sell.


Saleem

Posted in: Mixed