Sunday, November 22, 2020

US stock market ready to take off again......

 US stock market was facing issues on many fronts thus went through discounting / digestive mechanism.

Issues were too many, biggest one was record breaking rise in Corona Virus infection, not only in USA but worldwide called 2nd wave or 3rd wave in Europe Australia and Hing Kong, thus traders / investors were taken back by this ongoing waves.

US election results were being challenged  with " creative language " preventing President Elect to access information / funding to get started on their urgent agenda.

Outgoing administration in USA were highlighting Golf Course as priority focus instead of  consoling words for infected.....

BUT TV and anchors are fixated on non-issues to keep ratings going....

Hopefully as we look to this week in markets besides " pardoning the TURKEY " most issues are expected to run its course or find their " natural death "

Market may start to look ahead to January 20th, 2021 to get going in business @ hand...

With time Corona Virus will see " flattening of curve " a term we all have forgotten

Here is a look @ RSI :

IWM        68.30

XLE         65.18

TAN          63.42

XLF         63.06

SOX         61.87

DOW       57.88

S&P 500 57.08

Nasdaq   56.97

GLD      44.37

It is very interesting to note that GLD is last in terms of performance. Nasdaq 2nd last is a shocker.

XLE @ 2nd strongest is an eye opener for many skeptics...

IWM or Russell 2000 or small caps are the-best performing category.

Bottom line is....markets are changing very fast, rotation has happened already.

It is extremely important to keep analyzing RSI for an accurate direction before it hits Barron's or pundits desktops...they all are looking @ 40 indicators and remain very confused.

SO do some homework and get going in a fast shifting market of 2020 and beyond...

Cannot make market posture any more clear than RSI my only and most important indicator!

Good luck with your own conclusion about rotation / shift in market and your own comfort level.

BLOG does NOT give buy or sell.

Saleem



4 comments:

stocktrader_1996 said...

Hi Saleem,

Last week: +8.78% (YTD: +110.81%)
Notable Leaders: FUBO COTY GRWG ELY PENN SQ TWLO RUN HUBS SNAP
Notable Laggards: ADPT LQDA FDX

It was another incredible week for the portfolio with many stocks contributing to the gains despite the mixed averages. With earnings season mostly over at this point, it looks to be a cruise into year end. Many stocks are significantly up on the year, or at least from the lows, and it's likely we don't see much profit taking due to tax disadvantages. Even the virus numbers could be plateauing as behavioral and official restrictions took hold, bridging us to the wider availability of vaccines. It is time to ride the winners through next month.

Holdings: GM FUBO SNAP TPR EAT RUN ELY COTY HUBS BHVN LITE GRWG TWLO FDX MTCH, cash 0.0%

Stocktrader

Stocks100 said...


Hi Stocktrader,

Last week UP 5.24%

YTD UP 49.71%

Saleem

stocktrader_1996 said...

Hi Saleem,

Sold COTY @ 6.52 to take profits

Stocktrader

Stocks100 said...


Hi Stocktrader,

Love all those profitable Sales$$$$$

Good luck with new pick!

Saleem