Another week and another all time high in S&P 500.
Here is the picture of 3 major indices :
-S&P 500 closed 2122.73, all time high 2125.92...only 3.19 points form new all time high
-Dow closed 18272, all time high 18288...only 16 points form new all time high
-Nasdaq closed 5048.29, all time closing high 5119.83..only 72 points from new all time high
Nasdaq is the weak cousin with a tiny negative CMF
BUT there are weaknesses in some sectors :
-Transport weak
-Utilities weak
-Consumer electronics weak
There is also surprising strength in Natural Gas & Gold and they are breaking out.....
SO...the message of the market is, stay in a diversified portfolio and you can withstand volatility easily.....
Also market is saying stay @ max exposure as it is going higher and may go in overdrive very quickly....
Do not overthink daily zig zag, that is the market we got, cannot have straight line up TAPE..those days are over for good....
Volatility is a sign of a healthy market and a normal market
IF you can make 8% in a year, you are as good as the market, higher means, you are doing better than market.
All boats cannot be lifted anymore, that was 2009 to 2014 market......
SO..think about this TAPE which is healthy but choppy day to day......
Good luck with your portfolio & strategy!
BLOG does NOT give buy or sell.
Saleem
5 comments:
Hi Saleem,
It turned out to be an interesting week with the portfolio up 1.10% (+9.66% YTD) versus small gains for the indices. The source of my gains were somewhat surprising as I tabulated the numbers. The biggest gainers were WLH (+4.3% from purchase), CSOD (+3.9%), and HDP (+3.3% from avg purchase). EMN GM IACI all had dropped over 1% on the week when I sold.
The message I took away from this action was similar to yours. Certain stocks are doing well, while many other stocks are stuck/resting. This rotation probably signals a healthy market, but I am concerned about the sluggishness of the US economy. We need to see some summer pickup to create sustainable long term momentum.
Despite my bullish leanings, I might keep TZA around a bit this week and see what happens. I feel like I have plenty of long exposure, and I'm running a bit low on fresh ideas currently. I might have to get that free trial to IBD! :)
Hope all is well!
Stocktrader
Hi Saleem,
Portfolio is currently: TZA SPLK C FB AAL CSOD BABA HDP HUN WLH AEMD. Cash: 10.6%
I will probably sell HDP today or soon. With the lockup expiration coming next month, I think there's a chance for an early secondary or sluggish trading until we get past that event. Either way, the time to own it isn't probably now.
Stocktrader
Hi Saleem,
Sold HDP @ 23.00 avg for reasons I outlined above.
Stocktrader
Hi Saleem,
Sold BABA @ 86.95.
I'm actually looking to buy YHOO instead to play both BABA and the undervaluation of YHOO's other assets.
Stocktrader
Hi Stocktrader,
Another week and another $$$$$$ you are performing way better than all indices.
Good move in getting rid of laggards / questionable near term.
Market is looking solid...
Saleem
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