Barron's has a banner headline this week " Ways to play a long-awaited value revival " dated November 14th 2020....
Many die hard " buy & hold " strategist are waking up to something very unique taking place....
According to Barron's " Banks Energy Industrials and other economically sensitive groups could be ready to bust out of their long slump "
For the record XLE has already busted out and has gained 25.57% in last 11 trading days.....
Last 11 trading days has seen fierce rotation into laggards / travel / Banks / economic sensitive sectors.
There may be a fierce rotation into energy / travel / laggards starting Monday as Barron's have given stamp of approval.
" Covid Vaccine on the horizon " is the buzzword used by Barron's.......
Like everything else some have and were positioned for vaccine arrival even sooner than much touted April 2021....
Vaccine has become a race of " who is first out and by how much % effectiveness " Do I hear 91% effectiveness?
It is very interesting to see how RSI is looking before Barron's reveal of new and improved idea of investing :
IWM 67.57%
XLF 66.02%
DOW 64.78%
S&P 500 63.57%
XLE 63.30%
SOX 61.43%
Nasdaq 58.00%
GLD 47.57%
Who could have guessed that Nasdaq will be 2nd from bottom only better than worst performing sector Gold.
XLE is doing better than SOX.
XLF is among superstar of all sector Financials are Number 2.....
IWM which is Russell 2000 / small caps is the-best performing index ...rated Number 1.....
SO...much has changed since the popularity of stay home stocks...
Rotation or shift is taking place which could be several years phenomenon....
As the famous song says " we have only just begun "
SO...you have a real RSI numbers so " I can see clearly now "
Stock markets goes through many theme of popularity as we just witnessed 8 months of non-stop run of " stay home stocks " where most stocks went UP in a straight line several 100% moves....
New theme of economic revival stocks has developed and this could last many times longer than stay home stocks
Writing is on the wall, earlier you rotate in, better off you will be " financially speaking "
Do not be shocked by swift move UP of Oil, Airlines, Cruise lines, Casinos / Gaming & Financials stocks...
Small cap is on fire.....things are a changing furiously....
Good luck with your own analysis and comfort level.
BLOG does NOT give buy or sell.
Saleem
9 comments:
Hi Saleem,
Last week: -0.08% (YTD: +93.79%)
Notable Leaders: BHVN GRWG GM EAT QRVO
Notable Laggards: LQDA FUBO LITE SQ PTON SNAP
It was one of the fiercest rotational weeks that I can ever remember. My portfolio treaded water as my technology exposure was quite high, and I doubled down on some of these ideas in error. I think it's crucial right now to think about which companies will have better earnings in 2021 and then 2022, and also what final level of those earnings we might see in 2022 (the year in which most people expect a more normalized environment). This is not an easy exercise at this early time, but the market is trying daily to discount these factors. I think a balanced approach is still the right one, with pure stay-at-home winners and heavily damaged balance sheet going-out plays probably not the right areas.
Holdings: GM EAT PINS BHVN GTLS HUBS ELY SQ SNAP MTCH ADPT LITE GRWG PTON FUBO LQDA, cash 0.0%
My plan is to sell some pure stay-at-home winners this week and try to find some more hybrid potential winners.
Stocktrader
Hi Saleem,
Sold GTLS @ 94.96 to take small profits
Stocktrader
Hi Saleem,
Bought PENN @ 64.05
Stocktrader
Hi Stocktrader,
Last week UP 11.03%
YTD UP 44.47%
Saleem
Hi Saleem,
Sold SNAP @ 41.01
Bought TWLO @ 279.56
A really interesting note on TWLO today gets me more interested:
Twilio price target raised to $550 from $350 at Oppenheimer
Oppenheimer analyst Ittai Kidron raised the firm's price target on Twilio to $550 from $350 and keeps an Outperform rating on the shares. After examining Twilio's product differentiation and evolving go-to-market approach, the analyst believes it's creating an engagement flywheel that can expand its competitive moat and drive G2K customer traction. Twilio's G2K contribution is low compared to software market leaders but based on his analysis it is set to accelerate, facilitating its effort to reach $4B in revenue while still growing over 30% in 2023, Kidron contends. Furthermore, his proprietary DBNE analysis suggests about $470M upside to 2022 consensus.
Stocktrader
Hi Saleem,
Sold LQDA @ 3.69 on failed price action
Stocktrader
Hi Saleem,
Added a little to LITE @ 82.84
Stocktrader
Hi Stocktrader,
Good luck with PENN TWLO
Saleem
Hi Stocktrader,
Good luck with more LITE.
Saleem
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