US stock market showing mixed picture.....
Russell 2000 & Nasdaq in overbought territory...
Gold deeply oversold....
Silver also oversold...
S&P 500, Nasdaq, DOW & SOX all in new all time high territory..
XLE looking very strong based on direction of Oil & Natural Gas...all in new 13 months high today....
TAN also looking attractive now...
As noted above, market rotation is happening @ a rapid pace...
This market has defied logic since October lows, it has been 4 months of rapid uptrend in many @ home stocks which has quadrupled in most cases.
Gaming stocks like MGM has surprised many naysayers by hitting new 52 wk high in this difficult environment of very little business, but participation is expected to rapidly improve starting just about now.....entire gaming industry will benefit many stocks will jump like WYNN LVS++++
Biggest question is how to participate in this changing / rotation stock market....
My suggestion is to have a diversified portfolio of many new sectors which will greatly benefit from economy opening up worldwide.
Vaccines are given rapidly in USA, UK, India which may change opening hurdles very soon.
China is almost back to pre pandemic economy......
No matter which market, I always make buying / selling decision based on relative RSI...a very good trading tool.....
There are many technical indicators, some are flashing sell sell sell now .....like bull bear ratio++
BUT some sectors are getting all warmed UP...focus on those NOT on market.....
Sometimes minor pullbacks in upcoming sectors in a market selloff is a smart strategy....
Show patience and conviction in your high comfort stocks / sectors..
Good luck with your own thesis and comfort level.
BLOG does NOT give buy or sell.
Saleem
Hi Saleem,
ReplyDeleteLast week: +3.83% (YTD: +25.62%)
Notable Leaders: EH SUMO LYFT QRVO SIMO
Notable Laggards: COTY TZA GRTS
The market charged higher again and the portfolio followed thanks mostly to strength in EH (+62.4%). This is a different market than we've experienced any time in the last 20 years, and I'm not sure I'm properly equipped to make the huge gains that some others may. I will continue to take a more conservative approach, sometimes with hedges, sometimes with more boring names, in order to limit the portfolio volatility. I don't necessarily expect a large pullback in the short term, but I can definitely sleep better at night with a more balanced approach than some people's extreme bullish positioning. Possible reasons for market declines would be rising interest rates or too much supply from IPOs/SPACs/secondary offerings.
Holdings: TZA EH SUMO TPR PINS FDX QRVO LYFT TSM GRWG EAT AVLR SNAP, cash 13.3%
Stocktrader
ReplyDeleteHi Stocktrader,
Last week UP 7.36%
YTD UP 20.24%
Saleem
ReplyDeleteHi Stocktrader,
Added 80% MRVL @ $54.00
Saleem
ReplyDeleteHi Stocktrader,
Sold CNX @ $13.80
Saleem
ReplyDeleteHi Stocktrader,
Sold SU @ $18.70
Saleem
Hi Saleem,
ReplyDeleteGood luck with the moves.
Stocktrader
ReplyDeleteHi stocktrader,
Added another 120% MRVL @ $53.45
Saleem
Hi Saleem,
ReplyDeleteGood luck with more MRVL!
Bought AGCO @ 117.36 on the recent dip
Farmers appear to be in better financial shape than any time in recent memory.
Stocktrader
ReplyDeleteHi Stocktrader,
Good luck with AGCO...
Saleem
Hi Saleem,
ReplyDeleteBought RUN @ 77.81 to get renewable energy exposure
Stocktrader
ReplyDeleteHi Stocktrader,
Good luck with RUN.....
Saleem