Sunday, September 8, 2019

Market in rally mode ?

Market seems to be in rally mode after struggling and slumping for 6 straight days in end of July and first days of August when we lost all gains made in a month.

What has made this change....

China & USA have set a meeting date in October for trade negotiations.

Hong Kong is in resolution mode with protesters, step one taken with withdrawal of repatriation to Chinese mainland.

US data has been lackluster and Fed has been sounding more dovish lately, good for the market.

Since first few days of August, market has tried for two weeks to make a firm bottom, from triple bottom to quadruple bottom has been the process.

Last 23 trading days for S&P 500, DOW, Nasdaq & SOX, there has been a well defined rally mode, here are the stat of last 23 days :

S&P 500    UP 5.52%

Nasdaq      UP 5.74%

DOW        UP 5.92%

SOX         UP 11.13%

All of the above Indices are above 50 DMA & 200 DMA

Another positive sign is, that Russell 2000 has started to move UP, in last 6 trading days, it is UP 3.79%...but it is still below 50 DMA & 200 DMA...but ready to take it out...maybe on Monday?

All of the above IS a major shift in market technicals and sentiments....

Looks like September IS for history books, when we make new series of all time highs....

With all the optimism and real progress in markets, NOW it is up to US to be in the right stocks and make some serious money.

A broad diversified portfolio is all that is needed, even Financials have a pulse, try it, you may find some gains.

Good luck with your own views about this TAPE.

BLOG does NOT give buy or sell.

Saleem

4 comments:

stocktrader_1996 said...

Hi Saleem,

Last week: +0.10% (YTD: +11.58%)
Notable Winners: TWTR CSOD LITE ACST TRIL
Notable Losers: PSNL LYFT MDB VYGR PLAN CSTL

After reviewing how poorly some of my positions performed, it's a pleasant surprise to have any gains at all this past week. The fierce rotation into cyclical stocks continued last week, creating more downward pressure on the previously-hot secular growth stories. I'm not sure how long this rotation lasts, but I was fortunate to have already trimmed some exposure there in prior weeks. Pruning the companies with majorly slumped charts was a priority last week, although that took me out of CRON a week too early. I do hope loading the portfolio up with generally uptrending charts provides a nice lift into year's end however.

Portfolio: FSLR LITE FB TREX TWTR ACMR CSOD VICR CSTL MDB ACST TRIL, cash 10.4%

Stocktrader

Stocks100 said...


Hi Stocktrader,

Last week UP 5.10%

YTD UP 71.28%

Saleem

stocktrader_1996 said...

Hi Saleem,

Bought PLAN @ 47.98

$48 was my price target in mind when I sold. I'll stick with that despite the fact that price action indicates possibly further to fall still.

Stocktrader

Stocks100 said...


Hi Stocktrader,

Good luck with PLAN

Saleem