Last 4 days TAPE has been momentum driven, too much money chasing stocks.
1st 4 days of January has been totally one sided UP move...
This has been the-best start to new year since 2003
Dow, S&P 500 and Nasdaq all @ new all time highs
Biggest catalyst for this move, which was mostly ignored in "trump driven news" was start of talk between North & South Korea, North is also participating in South Korea winter Olympics.
When worldwide markets have so much momentum @ the same time, there is a much larger case for being bullish.
Keep an eye on Nikkei, FTSE, Hang Seng, DAX, CAC & Shanghai to notice any change in trend.
In US stock market, all of a sudden, most sectors are participating SOX seems to be lagging.
Momentum driven markets usually go beyond rational numbers or targets, 2000 TAPE is a clear example of that.
Cryptocurrencies are something new and are in very early stages, they have a very good chance of outperforming by a wide margin, biggest reason "disbelief in being a legitimate or credible idea"
In the next few weeks we will see many targets on S&P 500 which currently goes to 2770 area only 30 points above where we are.......
I personally feel that 3000 is doable in S&P 500, i may be conservative....
This is an environment which encourages " go with the flow " instead of doing serious research.
Momentum markets are the easiest to make money in like 1999-2000.....
Keep buying which works...in PC revolution it was DELL INTC CSCO SUNW......traders who became investors made the-most money....stay as long until it stops working....
Buy from new 52 wk high list is the easiest research in momentum driven market......
BUT...be diversified in many sectors, they do go through rotation even in a fast moving market.
Good luck with your own strategy and comfort level.
BLOG does NOT give buy or sell.
Saleem
4 comments:
Hi Stocktrader,
Added 100% WB in pre market @
$120.10.
Saleem
Hi Saleem,
Good luck with more WB!
Stocktradere
Hi Saleem,
Last Week:
Performance: +4.92% (YTD: +4.92%)
Notable Winners: MU GM HCLP ACIA TRIL SPLK (all >6%+)
Notable Loser: OPTN
It was an extremely surprising week as we really charged so hard after the new year turned over. After the great 2017 we had, and with a sluggish prior two weeks to end the year, I certainly didn't expect that kind of action. Even more surprising to me was the very large moves in technology stocks when I thought more traditional companies, benefiting from a lower corporate tax rate and an improving economy, would take some of the attention away from the FANG and friends. In the end, my diversification really helped and the portfolio started the year off well.
Holdings: TNA BAC EMN SPLK MU HCLP ACIA OPTN LITE GM GPK TRIL, cash 1.1%
Stocktrader
Hi Stocktrader,
Same stocks which caused worst performance in 2017, gave me the-biggest boost in 1st 4 trading days of 2018.
My portfolio was UP 14.24%....
Saleem
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