US stock market is in " neverland " where traditional technical definitions are not holding up well @ all.
Most well known technicians like Carter Worth has been wrong in most predictions about S&P 500 and its direction....
Most traders are also baffled by resiliency of this market....
Any trader who thought they knew better than market, are wiped out in no time.
This is a " hyper momentum wave " which needs nobody's approval.
This is not a text book or economics 101 situation.....
Fed is hell bent to steer this COVID-19 slump into a positive conclusion for the economy, an unprecedented move which anybody has ever seen, Fed is supporting this market with everything they can muster, no matter what it takes.....
Once you understand Fed role as being in the driver seat with impunity to print print and more printing of dollars as needed or when not needed ....market has to bow down to Fed's will and direction.
RSI is already defying logic as listed below :
S&P 500 79.26
TAN 78.27
Nasdaq 74.21
DOW 74.14
SOX 63.54
IWM 62.40
GLD 54.58
XLE 46.22
As you can clearly see that most sector / index are above 60 which is considered overbought, S&P 500 almost hitting 80........
Since March 23rd low, it is over 5 months and 1 week, we have not pulled back and have moved UP in a straight line of 60%++++S&P 500 was @ 2191.86 on March 23rd, 2020, closed on Friday @ 3508.01 a gain of 1316.15 points or straight 60%......
It is better to go with the flow with a well diversified portfolio, rotation is the name of the game.
Market is also anticipating " change in rose garden "
Leadership is staying in strong stocks on any excuse, 10% to 26% gains are becoming routine on a good day.
SO ..in conclusion, Fed is backing markets big time with unlimited funds, Election is giving boost, rotation keeps happening......
Technicals are out of the window for now...
VIX @ 22.96 ...still room to go down to 52 week low of 11.42...85.47 was the high....
Sit back and enjoy your morning coffee, trend is your friend, the best I have ever seen!!!!
BLOG does NOT give buy or sell.
Saleem
6 comments:
Hi Saleem,
Last week: +1.86% (YTD: +68.26%)
Notable Leaders: PLAN RUN AVLR HUBS ELF
Notable Laggards: GRWG CHGG HCAT BHVN
It was a rotational week but with strong general strength. My portfolio lagged a little due to not enough cyclical exposure, but it turned out ok. I have since raised some cash as I think the market could experience turbulence ahead of a tightening election, and specifically I liquidated stakes in companies that may have received a democratic-win boost. I will continue to look for opportunities though as I feel the market will finish the year strongly.
Holdings: SQ AGCO HUBS AVLR SWKS HCAT PSNL ELF LITE CHGG MTCH BHVN, cash 25.3%
Stocktrader
Hi guys,
Bought EXAS @ 75.85 for a trade
With colon cancer on the minds of people given the tragic death of Chadwick Boseman, and now FDA authorization for an at-home nasal COVID test, I feel like it can gain some traction after a rough month.
Stocktrader
Hi Stocktrader,
Last week UP 9.42%
YTD UP 51.58%
Saleem
Hi Stocktrader,
Good luck with EXAS.
Saleem
Hi Saleem,
Sold LITE @ 85.96
Sold HUBS @ 300.10
Sold SQ @ 159.24
Sold PSNL @ 22.42
Taking profits in some overbought or underperforming names.
Stocktrader
Hi Stocktrader,
Good luck with new buys.
Saleem
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