Market got many good news last week from deeply oversold conditions.
Mexico & USA agreed on last irritant on trade and we may rally on Monday...
Here is numbers for rally from bottom to close on Friday :
Nasdaq gained 6.17% from low
S&P 500 gained 5.3% from low
DOW gained 5.20% from low
SO Nasdaq outperformed S&P 500 and DOW
Only S&P 500 closed above 50 DMA
Here is the RSI numbers for key sectors :
DOW 56.62
S&P 500 56.31
Nasdaq 51.75
SOX 48.52
RUT 46.98
On this table, one can see that DOW & S&P 500 with upcoming rally on Monday may be vulnerable to profit taking.
Nasdaq SOX & RUT have more room to run, so funds can be routed from DOW & S&P 500 to Nasdaq SOX & RUT....
YES..it was a very good week for all participants, with above average exposure in the market.
IF we can get some movement on US China trade impasse, it will be extremely bullish for all sectors.....BUT...that may be just a wish for now....
FED has been shifting its policy rapidly to deal with falling interest rates all over including India.
Markets are loving FED's looking @ lowering Fed funds rates sooner.
Tension between US & IRAN is shifting to negotiations instead of threats and counter threats, another positive for the market.
SO...we may be looking at more positive developments from G 20 meeting also.
Who said, we cannot have more than 1 good news in a week, we got many last week and counting..
SO..all seems to be moving in right direction, BUT do not forget to book some gains on Monday..
Good luck with your own analysis & comfort level.
BLOG does NOT give buy or sell.
Saleem
4 comments:
Hi Saleem,
Last week: +5.78% (YTD: +3.81%)
Notable Winners: QURE URI PLAN VYGR FB LYFT
Notable Losers: TENB SPLK SAIL
It was a really great week despite some sluggishness from my cloud plays (maybe will look better this week as M&A heats up). The cross-currents of the trade deals and the Fed make investing difficult short term, but I think this is some of the up and down churn that makes clear the true winners over time. Hopefully I can correctly identify those to be set up for a great back half of the year.
Holdings: QURE FB PLAN LITE VYGR TWTR URI MHO FSLY SPLK SAIL TENB TRIL, cash 3.7%
Stocktrader
Hi Stocktrader,
Last week UP 15.67%
YTD UP 70.78%
Saleem
Hi Saleem,
Very nice week!!
Sold PLAN @ 49.59 to take profits and on high valuation.
Bought CSOD @ 53.74 to accelerating growth again finally, cheap valuation, and potential takeover possibilities.
Stocktrader
Hi Stocktrader,
Thanks for your feedback!
Good luck with CSOD....
Saleem
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