Stock market was in a consolidation mode last 3 trading days.
All Indices found support.
Major catalyst emerging to boost stock market
Pfizer vaccine got approval, vaccination starts Monday the 14th December
US supreme court gave closure to Presidential election result in USA
Above two should give a huge boost to stock market on Monday
RSI is giving a very interesting sector strength report and they are :
IWM 71.36
XLE 66.56
JETS 63.62
Nasdaq 61.52
TAN 61.13
XLF 61.03
SOX 60.38
DOW 60.36
S&P 500 60.22
GLD 46.25
IF we look @ RSI strength then Russell 2000 and Energy stocks are in the lead with 1 & 2 showing relative outperformance.
Airlines are showing strength in number 3 spot.
S&P 500 is 2nd last, who knew that this picture will emerge
Gold remains " Dog of the RSI " in dead last position by a mile
DOW is 3rd from the last in sector strength
I do not believe any technician which I follow ever predicted that when markets are close to all time high, even Nasdaq will not make it to top 3 relative strength position
BUT things are changing....and has changed in a big way
With COVID-19 vaccine being given from Monday and Presidential theatrics are out of the way, Monday could be the day " to see the light for restart of US economy "
Expect huge gains in restart stocks energy, cruise lines, airlines, materials....
Please adjust your portfolio to reflect " restart is here "
Good luck with your own analysis and your own comfort level.
BLOG does NOT give buy or sell.
Saleem
6 comments:
Hi Saleem,
Last week: -0.60% (YTD: +129.22%)
Notable Leaders: TWLO SNAP GRWG(from purchase)
Notable Laggards: COTY VLDR(from purchase) GM SHOO
A stalling on stimulus talks and new lockdown measures across the country led to a modest pullback in the big indices and my portfolio. Small caps continued to outperform, and is indicative of broader market strength. Once we get the through the selling of S&P 500 stocks this week to add TSLA on Friday, it should be smooth sailing for the indices in the final two weeks. Even now, I think non-S&P related names can continue to run. I'm trying to have a mix of industries and ideas to let different themes help the portfolio run higher on varying days.
Holdings: TPR TWLO SUMO SNAP HUBS EAT LITE COTY MTCH ELY SHOO GM FDX GRWG VLDR BHVN FUBO, cash 0.3%
Stocktrader
Hi Stocktrader,
Last week UP 1.55%
YTD UP 65.95%
Saleem
Hi Saleem,
Sold VLDR @ 19.51
I decided I didn't want any of the LIDAR stocks due to much overcrowding. I'll take the small loss.
Stocktrader
Hi Stocktrader,
Good luck with next pick!
Saleem
Hi Saleem,
Sold MTCH @ 149.45 to take profits
Bought SQ @ 218.82
Stocktrader
Hi Stocktrader,
Good luck SQ for 5 in a row....
Saleem
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