US stock market may face many cross current in next few weeks....
Election which is heading in one direction only which is a change in white house residency.
BUT outgoing President will come up with many theatrics as possible which is being taken as entertainment only...no substance no impact all noise.....
2nd wave of CIVID-19 is a much more serious issue, it is going to create more pain, suffering and deaths to many all over the world.
Vaccine may counter 2nd wave to some extent, hope is eternal.....
Vaccine has to go through approval funding and impact will be monitored closely worldwide, there is great optimism that by end of this year, we may have vaccine available .
Market sentiment will remain challenging going into election and after election until results are final.
Stocks may gyrate according to news of the day.
NOW the question is ....what to do when it comes to allocation / exposure....an adjustment is required to lesser exposure than before, a 20% reduction is enough to reduce vulnerability...
Allocation needs to be where your own research and comfort level lies....
Currently, Small cap is doing extremely well which has become part of new rotation.
SOX is very strong also....
TAN is doing well
XLE is trying to make a base here...
GLD is weakest among all groups I follow.
50 DMA needs to be monitored as most major indices are near that critical level....
All in all, next few weeks is not business as usual, it remains very challenging.
Good luck with your own take on US politics / results and your comfort level.
BLOG does NOT give buy or sell.
Saleem
4 comments:
Hi Saleem,
Last week: -1.47% (YTD: +83.49%)
Notable Leaders: GM
Notable Laggards: RUN HUYA GRWG
It was a choppy week, and a few stocks saw profit taking. The market is trying to digest multiple points of concerns, but seems to be coming through decently. I expect the momentum underneath to only grow as we continue forward, and I think earnings season will positively surprise as many companies have used covid as their opportunity to get lean.
Holdings: GM EAT HUBS PINS SQ ELF MTCH USCR BHVN LITE VICR AGCO RUN PSNL GRWG, cash 0.0%
Stocktrader
Hi Stocktrader,
Last week Down 4.45%
YTD UP 33.56%
Saleem
Hi Saleem,
Sold RUN @ 63.29 on recent underperformance
Lagging in its sector, which has seen very large moves already, probably limits upside for now.
Bought half position size GMBL @ 5.43
I think e-sports is setting up for a multi-year run and this could be a great way to play that trend.
Bought half position LQDA @ 3.85 on today's news
There is clear interest in the company after today, and I wonder how much of the pre-merger price it can recoup.
Stocktrader
Hi Stocktrader,
Good luck with GMBL & LQDA...
RUN is definitely lagging while CSIQ JKA FSLR SPWR are flying to the moon...
Saleem
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