Last 3 trading days......

Last 3 trading days saw some downward move on renewed talk of rate hike, here is how all indices behaved :

Dow down .75%

Nasdaq down 1.28%

S&P 500 down 1.47%

Russell down 2.18%

It is interesting to see how indices behaved on two major negative news, Fed rate hike talk and Oil correction.

Also on friday, a much played news of a pundit predicting 10% correction sometimes in next few months, For the record stock market generally corrects twice in a year which ranges from 6% to 10%...so no news there.....

GDP of US was revised upward to 1.4% from 1% growth, this is a very good news for the bulls.

Oil remains the epi centre for stock movement, as US$ is getting a boost from rate hike talk, we may see continued pressure in oil & gold.

By end of the day oil & gold have an improving pattern, which helps indices in closing near high of the day.

Based on the TAPE action so far, it is a clear cut strong bull market, which has legs.

It is important to see that "trend is your friend"

It is important to note that oil is trading around $39.46 after so called correction, not a bad picture.

Gold is @ $1221.60, high being $1287.80 and low is $1046.50

VIX @ 14.74, high being 53.20 and low of 10.88, still room for a lower move which is good for equities.

All in all, we had a mini rest period in TAPE and we may start moving up again.

A well diversified approach with a focus on stronger stocks should do well going forward.

Good luck with your take of market and your own comfort level.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed