We are less than 3% away from the ATH. This is a healthy market pullback. 50 DMA is above 200 DMA and is trending up.
This could be a short term pivot and we can touch (or slightly undercut 50 DMA) and continue moving up. My portfolio is infact rising during this pullback - this implies the strongest stocks are actually still leading, there is no profit booking yet.
Use this time to cut out your underperforming stocks and add to your winners. Strongest Pockets in the markets - Finance, Banks, Capital Markets, Pharma, Infra/Realty.
Some pockets that are setting up - Metals, IT, Auto (dont expect outperformance here, markets have moved up while these are still setting up, so its a good chance they move in line with the markets, not much alpha here)
This could be a short term pivot and we can touch (or slightly undercut 50 DMA) and continue moving up. My portfolio is infact rising during this pullback - this implies the strongest stocks are actually still leading, there is no profit booking yet.
Use this time to cut out your underperforming stocks and add to your winners. Strongest Pockets in the markets - Finance, Banks, Capital Markets, Pharma, Infra/Realty.
Some pockets that are setting up - Metals, IT, Auto (dont expect outperformance here, markets have moved up while these are still setting up, so its a good chance they move in line with the markets, not much alpha here)
Note
Today's candle is positive because of the long tail, signalling buyers are wanting to take risk at these levels. I think we may get one more nasty session before we start heading up again. This will be a good shakeout for our short term Options Champions
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.