Tradable rally continues | stockbee


Tradable rally continues

As I said on 5th October, we are likely to get tradable rally. Since then the market has put on impressive reflex rally. At that stage market was extremely oversold and the Primary Indicator on Stockbee Market Monitor was at extreme level. Such extreme levels lead to bottoms or tradable rallies. In my Daily Market Analysis video on 4th October  night I made the call for a tradable rally lasting few weeks.

The Nasdaq 100 has been the best performing index since then. It is up 7.78% from the low.

There has been a wide spread buying since then with cumulatively around 2500  breakouts of 4% plus  in last 6 days.

The best performing stock in last 6 days is CDTI. The buying is focused on beaten down stocks.

As long as breadth trends hold the rally has potential for more gains. If we see a big down day in breadth term then it will be cause for concern.

Below the surface lot of stocks are showing nice breakouts and follow through in last six days. We currently have open positions in AAPL, CMTL, CMG, PANL, NILE.

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