Indices are all set to make new highs after fighting off job related sell-off ...
Jobs report was hotter than expected, which dashed hope for .50% rate cut, that was never in the cards as articulated earlier in the week by Fed officials.....
SO we are stuck with a lowly cut of .25% rate cut in near future to ensure growth of US economic activity...
Markets always gets carried away with rate cut enthusiasm, but trend is your friend, rate cut is a rate cut....
DOW, S&P 500 & Nasdaq are sitting @ new highs of the year or missing by a hair.....
S&P 500 closed @ new all time high
DOW is barely 78 points away.....it could be blown away @ Monday's open
Nasdaq is 15 points away from all time highs....another open another record high....
SOX has been the laggard story of the year...a surprising fact when Nasdaq is hitting all time highs, SOX is 8.9% or 143 points away from making new all time highs...
RUT or Russell 2000 is 9.59% away or 167 points from all time highs.....another laggard...
SO without SOX or RUT we are into all time highs, do not recall that SOX or RUT has ever missed a party of record highs.....
Surprisingly both SOX and RUT are above 50 DMA...which is encouraging...
All is set, ready and go for 3 major indices to make not only a new but series of all time highs....
GOLD is another beneficiary of lower interest rate environment and is also hovering near 6 year high....will not be surprised to go beyond $1900 per oz...after basing for over 6 years....
In the end .....it is all about anticipating or catching a trend.....
Trend is your friend.....higher we go in a narrowly focused portfolio, keep what is working, get rid of what is lagging....
Good luck with your own strategy & comfort level.....
BLOG does NOT give buy or sell.
Saleem
4 comments:
Hi Saleem,
Last week: -1.77% (YTD: +13.54%)
Notable Winners: BCEL PLAN CSOD
Notable Losers: PSNL LYFT RUBY QURE HEAR MPC
It was a really tough week for the portfolio with many losers, but especially PSNL, in a week where the averages rose. I think it was a function of profit taking after a great June for many of my stocks, but it bears watching more closely. An eye towards earnings might cause me to make more changes as we move forward, but I agree with your assessment that the rate backdrop is still supportive, even if we don't get the massive cuts formerly expected by the market.
Holdings: PLAN CSOD SAIL MHO QURE PSNL LYFT RUBY HEAR BHVN BCEL TRIL, cash 9.6%
Stocktrader
Hi Saleem,
I was on a mini-vacation for the last half of last week.
Good luck with NEM!
Stocktrader
Hi Saleem,
Bought some HUYA @ 25.24 on good chart and analyst upgrade.
Stocktrader
Hi Stocktrader,
Last week UP 3.38%
YTD UP 79.86%
Good luck with HUYA.
Saleem
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