Indices are trying to digest gains, year end low volume will continue until January 2nd, 2018. This gives a chance to look @ your portfolio and position for 2018.
Seasonality does not favor stock market in January, thus a feverish count for " January effect "....as goes January, so goes stock market for the year.
This January may be more challenging as majority of good news is priced in.
Many sectors may get a bid in January like Gold, Silver.......
SO...it is a matter of sector choice for start of the year.
Financials do not have a good record for January either.....
Here is a list of sectors / index from RSI point of view :
DOW 74.59
S&P 500 70.01
Nasdaq 63.73
GDX 62.70
EEM 59.80
RUT 58.93
SOX 52.14
Based on the above, EEM looks interesting here, GDX should do well.
While our front line indices takes rest or pulls back, there are areas to explore.
Wednesday is the last trading day for 2017, it may present some opportunities as some lock in profit and some book losses.
It will be interesting as to how we close this year in the last week of trading, this is a 4 day week in US and 3 day week in Canada, UK, Hong Kong & Australia as Tuesday, they are all closed.
Good luck with your strategy for 2018.
BLOG does NOT give buy or sell.
Saleem
3 comments:
Hi Saleem,
Last week:
Performance: +0.92% (YTD: +40.12%)
Notable Winners: X OPTN BAC TNA EMN
Notable Losers: HCLP TRIL MU ACIA
It was an up and down week, but the portfolio came out pretty well due to diversification efforts and the oversize position in TNA which outperformed. I struggle to find fresh catalysts for the market after the tax plan has finally passed, and investor sentiment is hitting fairly high levels (contraindicator), but I think companies have yet to really guide the extent to which earnings and cash flow may be improved going forward. A growing economy will certainly continue to help, but I think there will be a greater disparity between winners and losers next year, unlike this year's general market rise. Stock picking should rule.
Holdings: TNA BAC EMN MU SPLK ACIA OPTN X HCLP GM GPK TRIL, cash 0.1%
Happy holidays to all! :)
Stocktrader
Hi Stocktrader,
Nice finish to almost year end +40.12% ytd for you.
My week was up.95%, but ytd is negative 28.92%.
Bought WB @ $104.51.
Saleem
Hi Saleem,
Good luck with WB!
Stocktrader
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