There could be many who missed this huge rally since October 2019.....
SO..you missed 3 months of bullish TAPE amid many uncertainty......
- Fed was unsure about direction of Interest rates.....
- CHINA & USA were exchanging Nasty rebuttals through tweets and official statements..
- IRAN was in limbo with what to do with renewed sanctions.
- Brexit had no exit
- There were two countries INDIA & PAKISTAN doing their own version of war talk
-Then IRAN & USA had their own version of Missile and Drone kiss and makeup...
BUT US markets kept rallying through all of the above as IF it knew ahead of time....
Most of the above issues are " on side "
Market made its own "mini adjustment " by being down 2 full trading days......
SO for those who missed everything from October because you were too afraid to get into tweet diplomacy.....here comes the real rally now....
RSI is very appetizing for those who missed this rally, and they are :
IWM 56.90
SOX 61.30
DOW 62.41
S&P 500 67.69
Nasdaq 73.39
As you can clearly see when have you seen these RSI numbers in the middle / beginning of any major bull run.....probably NEVER.....
Nasdaq is the only index where it is fairly valued by can go substantially higher....remember strong bull market...RSI in High 80 is norm.....
All other index / indices are flashing BUY BUY BUY......
Those who are still not sure, BUY ETF of all of the above and leave it for next 10 years.....
Those who are daring and opportunistic play the rotation SOX & IWM are screaming buy...
SO...rotation is the idea of this market every 2 trading days, can go back and forth in many stocks.
Good luck with your analysis and comfort level.
BLOG does NOT give buy or sell.
Saleem
9 comments:
Hi Saleem,
Last week: +2.83% (YTD: +3.45%)
Notable Winners: DDOG PS CSOD AVLR PLAN MOMO
Notable Losers: IBP PSNL FAZ
It was a good start to the year for the portfolio with many growth stocks performing well. I removed some hedges opportunistically during big dips which actually also helped with performance to lock in some of those gains. I can't remember being more bullish about the medium term outlook than I am currently. The jobs report really did it for me where I'm convinced the Fed remains on hold, creating a positive backdrop with the strengthening profitability of companies. It is time to be fully invested, and I'll strategically get there throughout this month as we see some earnings report. I am hoping for some unwarranted dips in smaller companies to add exposure.
Holdings: FAZ CSOD DDOG PLAN BABA PS IBP PSNL MOMO, cash 8.5%
Stocktrader
Hi Saleem,
Bought HUYA @ 20.87 to increase Chinese exposure
With a good start to the year, a bounce off the 50 DMA, and high short interest, I look for a move higher from these levels. I am concerned about further crackdown on gaming in China, but I'm suspending that fear for a seemingly good setup on the stock.
Stocktrader
Hi Stocktrader,
Last week UP .58%
YTD UP 1.19%
Good luck with HUYA....
Saleem
Hi Stocktrader,
Sold LSCC @ $22.10
Sold MOMO @ $39.20
Saleem
Hi Saleem,
Nice profits!
Good luck with the next picks!
Stocktrader
Hi Stocktrader,
Sold MRVL $27.22
Sold NIO @ $3.66
Saleem
Hi stocktrader,
Sold CIEN $42.39
Saleem
Hi Saleem,
Oh my, selling day?!
Going to switch to different picks, or just think we've topped for a while?
Stocktrader
Hi Stocktrader,
Second guess YES.....
Chinese lifting of currency manipulator told me me signing catalyst is today.....after that digestion time....
YES do have some brand new ideas, my picks were stale for current environment....
As I had great year last year, am in no hurry to get back in.....my watchlist is completely revamped for 2020.
Saleem
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