SO...market celebrated Fed dovish stand on the direction of interest rates,lower the direction of rates, higher the direction of market.
We made series of new all time highs in DOW , S&P 500 and finally in Nasdaq...
Going forward, we have to recognize where the opportunities are, and where market is or maybe overbought.
Let us look @ RSI numbers to see where each sector of bull is sitting :
DOW 74.25
S&P 500 70.86
XLF 68.31
Nasdaq 67.83
SOX 64.53
XLE 62.87
GLD 62.61
TAN 59.01
RUT 57.57
I had to look @ most sector of this market to see where we are headed, It is very clear that DOW is overbought and RUT is lagging badly.
IF we play momentum plus rotation, we should see good returns.
Market is definitely getting close to overbought in a hurry but other sectors are not like Nasdaq & SOX which offers lot of ways to participate in their catch up rally..
Russell 2000 may represent biggest profit potential BUT sometimes laggards stay laggard for a long time and then turn south with overbought market.
XLNX AMD LRCX NVDA look undervalued relative to outperforming stocks.
Chinese stocks may be the-most attractive in terms of valuation, BUT it is the elephant in the room ( US China trade war is a major drag )
SO...hopefully...you have lot to think about in terms of how you will play this market rally which seems to be getting stronger by every close.
Good luck with your own strategy and comfort with this TAPE.
BLOG does NOT give buy or sell.
Saleem
10 comments:
Hi Saleem,
Last week: +2.43% (YTD: +16.30%)
Notable Winners: PSNL LYFT PLAN CSOD MHO BCEL
Notable Losers: QURE HUYA HEAR
It was a nice rebound week for the portfolio despite some laggards. It is easy in strong bull markets to get complacent with underperforming stocks as the overall performance masks the worst components. I hope to be more vigilant in pruning going forward when some individual stocks have played out their moves or thesis. So far, this is one of the hardest bull moves to play in recent memory, but that probably means we have a ways to go still.
Holdings: PLAN CSOD PS MHO SAIL PSNL LYFT RUBY HEAR TRIL, cash 16.4%
I think it's important to be full invested here so I'll be looking for ideas to act on imminently.
Stocktrader
Hi Saleem,
Bought GTLS @ 74.47
Bought ALB @ 72.40
I wanted to pick up some industrial and metal exposure and these are some of the more specialized ones.
Stocktrader
Hi Saleem,
Sold PSNL @ 23.78
The analyst initiations today were lackluster and indicate a digestion period ahead.
Stocktrader
Hi Stocktrader,
Last week UP 4.76%
YTD UP 84.62%
Bought FB @ $203.00
Good luck with GTLS & ALB.
Saleem
Hi Saleem,
Your amazing streak continues--congrats!!
Bought a little BCEL @ 16.48, waiting for more to fill at 16.50 if it comes back down.
Stocktrader
Hi Saleem,
Good luck with FB too!
Stocktrader
Hi Stocktrader,
Thanks for your complimentary note.
Good luck with BCEL....plus more....
Saleem
Hi Saleem,
Added another chunk of BCEL @ 16.54 to finish out the position.
Stocktrader
Hi Saleem,
Added my last remaining cash to ALB @ 71.63
Stocktrader
Hi Stocktrader,
Good luck with more ALB...
Saleem
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