There has been a strange co-relationship with oil price movement and stock market direction.
Oil @ $29.64 on Friday is much better than low of $26.05, this is a move up of 13.78% from low.
Stock prices have also moved in the last 5 trading days.....
First we moved UP from 1810.10 to 1930.68 in 3 trading days, which was a move of 120.58 S&P 500 points or 6.66%....
On Thursday & Friday we gave up @ low of the day, 28.51 points or 1.48%.....
OECD has given its latest estimate of GDP growth, everything is revised lower, US @ 3% and Canada @ 1.5%......no recession @ all.
IF we look @ total picture worldwide, it is not a negative scenario @ all.
Gold is flying higher on renewed inflation which came in above target in USA....
Most traders were not sure of gold rising but now we know why it was going up as inflation is ticking up from wage growth to consumer items.
Inflation is good as companies are able to increase prices on their product & services.
What all of the above means for stock prices.....
I believe that we will slowly move higher from here....
Front line companies will move up faster than struggling companies.
It is important to be in strong stocks as there is lot of room for price appreciation.
Many strong stocks are selling near lower end of their old range, i expect them to be much higher and make new highs in a years time.
@ this stage of the market, it is important to have higher exposure when prices are low.
This week, market should move higher as oil may find support and move up from here.
Conviction & patience is key in a changing market condition, IF we are to move substantially higher as we go along, then you have lot of room to grow your portfolio and returns.
Good luck with your own homework and stock picks.
BLOG does NOT give buy or sell.
Saleem
5 comments:
Hi Saleem,
My confidence in both my portfolio and the market rebound really showed last week as I only made one transaction, my lowest weekly tally this year, and the portfolio outperformed all indices by gaining 3.96%. It is still a long way back to even, but it's good to see some progress multiple weeks in a row.
Portfolio: RLYP GM TMF DKS TREE BAC NXPI FB WLH HUN
Cash: 0.0%
Some key earnings for the portfolio this week include RLYP (Wed PM) where they will announce initial prescription numbers, TREE (Thu AM) where they will provide officially updated 2016 guidance hopefully relieving fears from the large selloff in January when they didn't, and WLH (Thu AM) where we will see if they are really in as dire a shape as the market seems to have priced in.
Other interesting earnings this week for me include FIT (Mon PM) and the software sector of CRM (Wed PM), PANW (Thu PM), and SPLK (Thu PM). I expect a massive FIT quarter, but I'm increasingly unsure of how much value they can expect going forward. I am hoping CRM disappoints in some way because I would love to buy some SPLK near $30 again.
Good luck to everyone this week! :)
Stocktrader
Hi Stocktrader,
Only one transaction?
What will you do whole day?
Hopefully we are all heading towards a profitable 2016.
Good luck with your wish and portfolio.
Saleem
Hi Saleem,
Haha yes, only one transaction all week, but constantly on watch! :)
Stocktrader
Hi Saleem,
...and as you know, I also do a shorter-term portfolio that I have referenced here on occasion. I have more activity there daily but the objectives between the portfolios are completely different and rarely relevant for this blog.
Stocktrader
Hi Stocktrader,
I know about your HFT account.
Good luck with your trades there.
Saleem
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