Here we are in 2021.....
US stock market has gained 43% in Nasdaq & 7% in DOW for the year 2020.....
SO IF you bought Nasdaq then you are looking very smart.....
BUT IF you were in DOW it was UP only 7%...which is below 8% average gains for market...
SO.....with all the fear & talk of Pandemic which started in January in Wuhan China and now in January of 2021 it is still gaining momentum in 2nd wave in US / Canada 3rd wave in some countries.....BUT we ended stock market in 2020 as IF it was a positive......
Most of us in this BLOG and elsewhere did not follow any script and did our own thing.....
Surprisingly, I stayed away from my favorite sector technology as it was gaining strong momentum....
I played MGM AAL CCL APA CNX over & over as I liked its volatility in a very narrow range compared to wild swings of Technology stocks which was making me very nervous...my gains for the year was 58.40%.....with very little stress....
Looking forward to 2021.....
It is not going to be easy for popular stocks
Rotation will be in high gear and may outperform most popular stocks, @ least that is the theme I am working with....
Biggest beneficiaries of 2020 was not my approach but those who listened to the market where 400% gains in some stocks were normal......
It will be interesting IF overall gains of any individual portfolio matched those 400%+++ gains....as volatility was stomach turning in those stocks......
Looking forward....
BITCOIN related stocks are being touted for 300%+++ gains in 2021, prediction for bitcoin is running into 6 digits value by end of the year.
Oil related ETF XLE ( stocks ) have made it into Dan Niles screaming buy list, another person who was known to be technology stocks focus....but he is ignoring techs to a large extent....
SO for 2021 ...one needs to think outside their own comfort zone to capitalize on rotation for 2021....
Overall market may not match 2020 @ all, it may be very sluggish for whole year.....
Some may wonder why sluggish for 2021, It seems that stocks which may perform well are not either in Major Index / Indices thus averages may stall.
Most of the prominent stocks have outperformed in 2020 and may be ahead of its fundamental or technicals thus may trade in a narrow range for 2021.....
There is lot to analyze for 2021, but starting with a fresh approach and outside the box is highly recommended.
Good luck with your own thesis, strategy and expertise.
BLOG does NOT give buy or sell.
Saleem
5 comments:
Hi Saleem,
What a year...
Last week: -4.96% (YTD: +129.52%)
Notable Leaders: none
Notable Laggards: FUBO SUMO EH TWLO SQ HUBS FDX
It was a big profit-taking week for smaller and year-long gainers as indices moved higher mostly on the strength of the large caps. Even though the last week of the year chopped off some gains, it was my largest yearly gain ever, which is hard to believe considering where we were in March and in the face of such an all-human crisis. How we proceed from here is hard to know, but I definitely think some of the specific winners from the stay-at-home economy will face headwinds of very tough comparables. Similarly, re-opening should rule as we get more back to "normal". Ultimately, it may be the path of the Federal Reserve that determines how much equities can rise this year. A zero interest rate policy would help stock valuations significantly. Flows and ideas change more quickly in the stock market than ever before, so it's important to be on our toes and read/react to the market we have, which doesn't always match the one we expect.
Holdings: FDX TPR SUMO TWLO EAT SQ GRWG ELY COTY SNAP GM LITE SHOO HCAT EH FUBO, cash 0.0%
Good luck to all in the new year, and special thanks to Saleem for continuing this blog through all the ups and downs over many years now!
Stocktrader
Hi Stocltrader,
Last week Down.82%
2020 UP 58.40%....
Much appreciated your feedback about my thought process in writing this BLOG!
You have earned 129.52% for the year which is well earned based on many strategies deployed by you and duly shared in real time for BLOG readers / visitors.
Hoping all BLOG visitors pay attention to your portfolio as you have excelled for last 4 years straight......always beating major averages by a mile!!
Thanks for your ongoing research and rationale for buying which is most helpful to me and visitors to this BLOG!!!
Good luck in 2021 to you and everyone visitors / readers!!!
Saleem
Hi Stocktrader,
Sold AG @ $14.40
Saleem
Hi Stocktrader,
Added 40% MGM @ $30.40
Saleem
Hi Saleem,
Good luck with the new moves!
What a start to the year already.
Stocktrader
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