It has been a long time since we rallied for 2 day in a row, but Friday's close @ high of the day and 2nd positive close gives lot of optimism.
Fed is all set to cut rates in October again.....
China & US trade negotiations have taken a more serious approach to get the deal done, expect positive tweets back to back instead of one positive and two negative....
Brexit issue is off the radar...
Iran confrontation heading towards some resolution....
Oil prices @ low low factoring worldwide slowdown...
India reducing interest rates repeatedly to boost their economy...
Gold may have seen their highs for 2 years.....
RSI in all major indices are @ bargain basement of 40 area....
RSI in SOX @ healthy 54.43..
Only Nasdaq and Russell 2000 below 50 DMA....
All in all we are looking at a " Northbound markets " going forward...
A good test of support generally take us down to 200 DMA area and break it for a day...this has occurred already.....
Can we hope for a series of new all time highs.....YES WE CAN......
Only serious uncertainty on the horizon is US political uncertainty with impeachment drums rolling...2nd whistleblower in focus....
And yes Hong Kong is still simmering with weekend protest.....
What will work in this environment " all boats will be lifted "
Supercharged will be SOX in this rally....
Chinese stocks may come alive again.....
Good luck with your own analysis and comfort level.
BLOG does NOT give buy or sell.
Saleem
4 comments:
Hi Saleem,
Last week: +1.61% (YTD: +4.15%)
Notable Winners: COUP PLAN IBP NEWR CSTL
Notable Losers: HCAT PSNL
It was a rebound week for the very beaten down growth stocks which helped the portfolio make good gains in a down week. I fear this was just a short squeeze in maybe a new bear market for them however, so I am watching carefully to potentially pare back positions further. I can't seem to shake a long term bear thesis heading into next year's highly differential outcomes election which could put spending on a major freeze until resolution.
Holdings: PLAN NEWR CSOD FSLR ACMR IBP VYGR HCAT CSTL PSNL TRIL, cash 12.2%
Stocktrader
Hi Stocktrader,
Last week Down 4.99%
YTD UP 58.54%
Saleem
Hi Saleem,
Bought HUBS @ 163.26
I might be later than I wanted here, but valuation is reasonable and growth drivers remain. I think the chart action recently is strong.
Added to PSNL @ 13.03
This was my smallest position (besides tiny TRIL), but I still really like the prospects going forward. I think the company has attracted doubters due to its high concentration of sales from one customer (the VA). That customer has very recently signed its biggest order ever, and I think there's opportunity to diversify much more, and it has a new product coming next year which will advance its technology forward.
Stocktrader
Hi Stocktrader,
Good luck with HUBS and more PSNL...
Saleem
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