In last 24 trading days, it is obvious that new money is pouring in Dow, transport and Russell.
Nasdaq and Sox are lagging badly in upsurge and new money inflow.
Infrastructure spending will impact Dow stocks big time along with Russell, as base metals and commodities takes off.....
Steels, Copper, Zinc, Metallurgical coal, Aluminum are all into play.....
Biggest laggard Oil, is ready to break out from its recent range of $40 to $50, to a new range of $55 to $60.....
Even $55 oil will be sweet to oil producers...
OPEC has unity & agreement for the first time since 2011.....5 long years of discord has come to an end.
Even Non-Opec producers are cooperating in managing production, first time since 2001.....and a real global agreement since 2001......
Watch oil fly now.......
Imagine.....what oil stocks will do IF we get to $60......most of them should show a 50% gains from current level...its the pricing leverage, while they all have cut down their cost big time.
Most oil companies have done majority of their upgrades already, higher oil prices will be a gravy without any additional cost.
While every trader is fixated on FANG, money will be made in oil, base metals........
TAPE profile has changed from heavy technology weighting to heavy base metals weighting and towards new oil heavy weighting........that will be the sequence....
YES..there are exceptions in technology stocks like AMD...which is coming into its highest growth profile in a long time.........
But now FANG means, Find Another New Growth stock.......
Canada is full of oil growth stocks, it may be wise to look North now for new ideas, some of the well known oil companies are CNQ, SU, they trade in NYSE, but other good ones are Tourmaline oil, Cenovus Energy, they trade in Toronto Stock Exchange......
Times are changing, it is important to adjust to new reality!
Good luck with your own strategy and comfort level.
BLOG does NOT give buy or sell.
Saleem
4 comments:
Hi Stocktrader,
Bought AMD in pre-market @ $10.53.
Saleem
Hi Saleem,
It was a nice week with the portfolio up 5.15% (+38.57% YTD) thanks to big gains in ZYNE(+20.6% upon sale), PI(+18.2% from purchase), and TRIL AKS CHK CY all more than +6.5% (TRIL AKS upon sale). TECK (-12.7% from purchase) was the big loser.
I made quite a few adjustments this week which mostly worked out, and maybe TECK still will! :)
Portfolio: MET, LYB FDX M CHK SPLK TECK PI, CY OCLR, cash 6.2%
Stocktrader
Hi Saleem,
Good luck with AMD!
Stocktrader
Hi Stocktrader,
You continue to outperform averages and most traders, all due to your judicious stock picking.
Your hard work is paying off big time.
Saleem
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