Working Off Overbought Readings
Another resting/trending higher day which is working off the overbought reading we have right now very well.
The action has really been remarkable as stocks are finally acting properly so I’m still in my full positions as I’ve noted here for the past few weeks and I see no reason to exit yet.
I’ve got 10% into SPY from 202 with alerts now set at 216, 214.50 and 213.40 for potential stops.
Have a great evening.
Warren
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The market is right to go up as rotation occurs towards a commodity rebound, however, this upside will be offset by declines in earnings and drops in demand. Thus, like every event there is excess before what is happening is hashed out. After years of no growth in most commodities the bottom is pretty much in on these and as they recover without growth and more demand, the rise will not be offset easily to consumers and thus the next sectors go down leading to a labor correction which will hurt the US more than the commodities downturn which hurt China.
There is value out there. It's just not the stocks most people are buying.