Indices closed @ lowest point of the day on high volume.
S&P 500 @ 1630.74
RSI @ 50.05
CMF @ 0.203
Internals were :
Down volume led by 8.26 to 1 in NYSE & 4.55 to 1 in Nasdaq
Declining stocks led by 5.66 to 1 in NYSE & 2.57 to 1 in Nasdq
Net new 52 wk lows were leading by 68 in NYSE & highs were leading by 93 in Nasdaq
VIX jumped 12.18% @ 16.30
Oil @ $91.97
Gold @ $1393.00
Canadian $ @ 96.45
Here is portfolio weighting :
AUY 36.93%
BBRY 29.58%
EBAY 25.03%
KOG 8.46%
Exposure 102%
Stocks which closed green included NFLX AMZN
GOOG TZA EXPE SPLK GRPN CIEN MS...
Next post by 2 PM on Sunday.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hey Saleem,
It was really a great week with the portfolio gaining 2.40% versus the S&P's 1.14% loss. Big winners included RALY (+15.4%), F (+6.02%), and SPLK (+4.33%), although many of the portfolio components were +1-4%. The few losers were M (-1.77%) and WLH (-1.44%), which is a great result. Here's the portfolio composition now:
Enterprise Software: MSFT SPLK CERN RALY PFPT MODN CSOD
Financials/Housing: PRU BAC WLH
Consumer Discretionary: M F SODA
Industrials/Materials: STLD APWC
Cash: ~9%
This week saw just a bit of pruning in selling some smaller portfolio positions like CRM and DATA, and I also pared back on specialized financials like OCN and RDN. I did pick up CERN and STLD to add a little more diversity in healthcare and materials, but was extremely selective in those choices to make sure to stick with my major themes. Earnings from SPLK went as planned and I continue to see momentum in the story and stock.
Even though the market declined this week, many sectors did well including my major areas of enterprise software, financials, and consumer discretionary. High growth stocks benefit from the stronger economy and don't see as much impact from rates or yields. Banks and insurers benefit nicely from the steeper yield curve and improved economy activity. Consumer discretionary stocks benefit from the strong dollar through increased consumer purchasing power and low inflation. I expect to continue to focus on these themes as long as the economic trajectory of the US stays intact. There is a place for more materials/industrials in the portfolio, but I have to be sensitive to strong dollar effects.
A sharp selloff on Friday created good opportunity as 100-150 points of the decline was likely just a technical event due to the MSCI indices rebalancing. Additionally, we are seeing some overall S&P pressure because of weakness in weak sectors like consumer staples and utilities which have been on a tear for over a year, but are finally cooling.
Much has been made of Japanese stocks and the yen. I think the volatility in both of these will lessen in coming weeks due to the efforts of the BOJ in keeping yields steady and also just a settling down as fair value gets better discovered. These factors should help instill more confidence in global investors.
Overall, I'm not sure I can predict if the market averages will rise or fall, but I expect continued flow into strengthening sectors. Although many are solely focused on the Fed right now, I think the action of Fed tapering due to a strong economy can only be good in the end, even if some turbulence happens along the way.
We planted some starter raspberry bushes today in hopes for fruit for many years to come. It was an adventure with the kids and more will certainly come as the picking starts! :)
Stocktrader
Hi Stocktrader,
Your portfolio continues to beat averages by a wide margin.
Your systematic & logical moves are working out as planned & hope for.
I am extremely concerned in the near term which a major adjustment period for economy as a whole.
Both my wife & me are into landscaping for personal enjoyment..planted many perrenials in front & Maple trees in back which have grown into 40 ft ..thus enveloping my back yard completely.....
Planting fruit tree is a good start for understanding green & greenery for your kids.....
Saleem
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