TAPE sending mixed signal ?

While the whole world is on a equity binge, there are trouble lurking underneath in US market.

SOX is the biggest issue in Nasdaq

While Nasdaq has mustered a closing high for all times, it is still below its intraday all time high of 5,132.52 on March 10th, 2000

SOX is 6.12% lower from its all time high ?

Financials are lower by 3.04%

Homebuilders are lower by 3.38%

Dow all time high is 18,288.63, it closed @ 18,080.14....

SO if you think Sox, Financials, Homebuilders..it is pointing to trouble in market......

This is extremely troubling while Nasdaq and S&P 500 is closing @ all time highs but other sectors are lagging badly.....

I personally believe that internals of this market is giving a "clear signal" that this all time high is driven "mechanically by those supercomputers"

Internal of this market should be minimum 3 to 1 near all time highs but it is struggling even in Nasdaq on Friday, when it was negative on UP volume and negative in Advancing stocks.....an extremely bad divergence?

Internals of the market are giving a clear warning that something has to give......

Nasdaq @ all time highest close and SOX is NOT.........

SO..what to do ?

Make sure you are booking any gains IF you have...

Also do not make any rash bet or over-exposure

Be ready to trim your exposure

And look for an opportunity to benefit from "slide in May syndrome"

MAY is almost here and needs to be taken "very seriously"

Selling now may not be a bad idea...

Waiting till September is a good strategy.....

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed