Rotation is the name of the game in US stock market.
You may be very surprised which sector is the strongest NOW....
Nasdaq, Russell 2000 is resting a bit
Here are the RSI numbers for our discussion :
XLE 65.36
SOX 63.61
IWM 63.47
DOW 61.91
Nasdaq 60.69
S&P 500 60.20
SLV 55.09
TAN 45.89
As you can clearly see XLE energy stocks are performing the-best in number one spot, many traders are ignoring this biggest beneficiary of reopening world economy.
Biggest bargain is TAN solar stocks have corrected all the excess and may be ready to move higher.
SLV or silver stocks may be the big wild card now as it is an industrial metal used in many many application.
All base metals are @ 9 year high.
Lumber @ 9 year high
Economy is going to come alive sooner than expected.
Biggest gains have been in non technology stocks and going forward
Technology may have to fight for 3rd or 4th best idea
Markets go through many changes, currently writing is on the Wall & Broad street...it is the base metals, lumber, energy, casino stocks fighting for number 1 spot...
Many traders are technology focus, that needs to be changed as of November election....many new ideas are being floated around, infrastructure, energy could do well.
Worldwide there is a housing boom due to work from home which is being accepted for all time, a shift which has been played out in stay home stocks.....
Bill Gates a promoter of science / medicine is predicting almost normalcy by September 2021 which is only 6 months away......
Trips to Las Vegas, Macao & Singapore casinos may be the biggest beneficiary IF rules are relaxed due to containment of COVID-19
Please adjust your trading strategy to benefit from rolling the dice on economic resurgence.
Good luck with your own strategy & comfort level.
BLOG does NOT give buy or sell.
Saleem
3 comments:
Hi Saleem,
Last week: -3.89% (YTD: +20.73%)
Notable Leaders: EAT SNAP AGCO TPR LYFT
Notable Laggards: EH RUN SUMO FDX
What goes up must come down: the portfolio got crushed by the EH drama which overshadowed most of the other action. Otherwise, it was a modest pullback week for the high fliers, with some re-opening/inflation names performing better. 10-yr yields remain my high focus for a short term pullback, but ultimately I think won't get too high and can't be a true concern at merely 2-2.5%. This broad rally can continue with the global economy appearing to be in its best shape in a long time and companies having cut inefficiencies during the pandemic becoming profit-making machines now. I do think inflation worries might confuse investors accustomed to the high growth stocks all the time - it might not be the only game in town now...
Holdings: TZA AGCO TPR PINS SUMO QRVO EAT FDX LYFT GRWG RUN TSM SNAP MTCH EH, cash 0.0%
Stocktrader
Hi Stocktrader,
Last week Down 7.19%
YTD UP 13.05%
Saleem
Hi Saleem,
Sold EAT @ 74.45 to take profits on rising costs despite the re-opening theme
Stocktrader
Post a Comment