US stock market is @ interesting point, Nasdaq has seen major buying since March, while DOW & S&P 500 are being bought with new money inflow now.
Here is the RSI for US market :
TAN 77.12
S&P 500 68.90
IWM 68.76
DOW 65.16
Nasdaq 65.13
SOX 61.82
XLE 50.06
Based on the above SOX is looking attractive, money has flowed out lately or profit has been booked.
Except for Solar stocks as highlighted in TAN is overbought and may need rest as rotation is going on.
XLE has the biggest potential as energy use is on the upswing as world economy is back on track slowly.
CHINA is almost @ pre COVID-19 level in terms of output growth.
USA is also moving slowly towards more economic activity despite many challenges.
USA stimulus package should provide needed boost, despite haggling for compromise a tradition all investors and traders are used to.
Russell 2000 is only 1 points away from making " golden cross " while Nasdaq, DOW, SOX & S&P 500 has made " golden cross " already.....
It is quite significant that Russell 2000 is also participating lately. Small cap is key to any real recovery and may be a leading indicator of normalcy to come.
Rotation should be in focus as previous leaders may not move as much, they had their day in the sun.
In any bull market, it is important to recognize what groups may be next in demand by traders, investors and most important of all Robinhood day traders.......
SO..keep an eye on your portfolio, it may have to change as rotation may become name of the game.
Good luck with your own thesis.
BLOG does NOT give buy or sell.
Saleem
5 comments:
Hi Saleem/Paramjeet,
Very impressive performances from you both!
Last week: +4.76% (YTD: +62.46%)
Notable Leaders: RUN SAIL SQ ELF HUBS
Notable Laggards: DDOG AVLR
After a huge week of earnings, the portfolio has come through mostly unscathed. DDOG was the only real disappointment, and now we move forward as the economy slowly heals from the virus shock.
Holdings: SQ CHGG AVLR HUBS SWKS ELY LITE PINS ELF ALB TWLO WEN GAN PLAN BHVN, cash 6.8%
I have one cash position available, and will be looking at RUN's earnings after close to see if there's opportunity on a potential dip. Otherwise, I am trying to hold stocks with at least some "re-opening" exposure as those may do better in coming weeks. CHGG and GAN are my two stocks most levered to stay-at-home, but I think their longer term stories may still generate returns.
Stocktrader
Hi Stocktrader & Paramjeet,
Bought SQ @ $141...
Saleem
Hi guys,
Bought GH @ 85.60 on positive news and needing some exposure to that space
Stocktrader
Hi Saleem,
Good luck with SQ!
Stocktrader
Hi Stocktrader,
Good luck with GH.....
Saleem
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