Stock market has faced many challenges and was trying to digest and discount all challenges.
Beside election, 2nd wave of COVID-19, now we have another immediate challenge which market faced on Friday.
New challenge is health of US President Donald Trump, reaction to that challenge was sharp but was managed by close.
Friday saw a shift in market where technology took a severe pullback.
Friday also saw rotation into laggard travel related stocks
S&P 500 & Nasdaq is below 50 DMA does not give a healthy technical picture.
Monday could be challenging for US market depending on health update of US President
Question remains how to navigate a very difficult and challenging market going forward
Earnings will take center stage starting from week of 12th November
Earnings should be good for most technology and stay home stocks
Travel related stocks will continue to burn cash and will show substantial losses
Real question is, how much of good or bad earnings are already baked in
It is never easy to make money or predict direction of market in short term
My recommendation is to underweight stay home stocks as they may have overshot already
Contrary play like travel related stocks should be overweight as they may have been pushed down too much
October is a challenging month most of the time
Stay close to news flash and react accordingly
Good luck with your own analysis and comfort level.
BLOG does NOT give buy or sell.
Saleem
Hi Saleem,
ReplyDeleteLast week: +0.12% (YTD: +73.33%)
Notable Leaders: PINS SQ MTCH CHGG QRVO BHVN
Notable Laggards: TZA FAZ EAT HUBS GRWG VICR
My portfolio underperformed fairly significantly due to the short hedging I had in place. The uncertainty surrounding the election surprisingly cleared up, and that sets the stage for a run into year end. I think the most interesting part may be a potential rotation into value stocks as the economy is expected to get boosted in a democratic sweep. Either way, I feel like stocks generally will perform well as earnings should impress given the cost-cutting measures many companies have taken, propelling earning power into next year.
Holdings: PINS EAT GM HUBS FAZ MTCH QRVO HCAT ELF TENB USCR VICR BHVN CHGG GRWG, cash 0.0%
Stocktrader
ReplyDeleteHi Stocktrader,
Last Week Flat
YTD UP 35.71%
Saleem
Hi Saleem,
ReplyDeleteSold CHGG @ 72.77 on re-opening
Sold TZA @ 14.06 on removal of hedging
Bought LYFT @ 27.81 on re-opening
Bought LITE @ 78.31 on good optical news
Stocktrader
Hi Saleem,
ReplyDeleteSold TENB @ 38.35
I feel uncomfortable with a pure WFH play in an increasingly competitive industry.
Stocktrader
ReplyDeleteHi Stocktrader,
Good luck with LYFT & LITE
Saleem
Hi Saleem,
ReplyDeleteSold HCAT @ 36.02
It seems to be at the intersection of a few headwinds including questions surrounding health care in a democratic world and a potential rotation into value stocks. I think it best to stay out for now.
Stocktrader
ReplyDeleteHi Stocktrader,
I think your analysis is on the right track.
Good luck with rethink & redeployment of funds$$$$$
Saleem