US Stock Market texture has changed, many issues are cropping up which is shaking confidence of buy & sleep crowd.
First & foremost is US fed funds rate which is in deep jeopardy, 10 year treasury is in " deep focus " to shake the will & strategy of Fed chief
10 year is currently @ 1.577% above " so called danger zone of 1.50% "
Stimulus is signed and done which should offset negativity of interest rates, $1400 stimulus check may bring life to many daytraders with this free money and may witness another " reddit phenomenon "
Vaccine is given rapidly all over the world which is extremely positive to bring a " normal trading environment "
Both @ home and restart have been played out to the hilt....
Simplistic trades like Energy stocks are overbought.
SO..it is back to fundamental analysis and technical analysis...an old trading school approach, know what you buy may be in vogue again.
Housing, base metals are all overbought, can be traded on any 10% pullback.
NOW the question is how to find stocks which can be traded, It Is back to my trustworthy RSI, find good stocks which is NOT in 60 or 70 and buy them...
China is @ full throttle and predicting 6% GDP growth which may be very conservative, more like 7% by Q 4.......
World commerce has adjusted through movement of cargo where it is all about Forklift loading and unloading....
Construction / infrastructure of big projects may be the huge focus of every government to boost employment and economy...
Job growth was better than expected in USA...which is a good thing even with disruption in TEXAS area.....economists can never see beyond their adding machine based on past numbers, never good @ projecting change or future.
All in all, we have entered an era of good old homework, know what is happening, instead of quick fix from so called market pundits, they all are " trend follower "
Be more like Cathie Wood, do your own projection and stick with it, be ahead of the game.
Good luck with your own analysis and comfort level.
BLOG does NOT give buy or sell.
Saleem
5 comments:
Hi Saleem,
Last week: -6.78% (YTD: +9.16%)
Notable Leaders: LYFT AGCO
Notable Laggards (>10% loss): EH GMBL GIK SNAP ENPH GRWG HUBS
The portfolio finally collapsed as story stocks underperformed dramatically. It is rare to see such divergence in averages and groups of stocks, but it has been a stellar run for many months with these kinds of stocks. Despite some amount of diversification and not fully allocating until later in the week, I could not escape the drawdown. Going forward, I expect I will continue with my long-standing method of picking stocks, which definitely includes "story" stocks. Ultimately, very high growers can withstand inflationary forces as a modest change of 1-2% in purchasing power doesn't greatly affect their 30% growth rates, and some of these stocks can benefit from increasing economic activity.
Holdings: AGCO LYFT TPR SUMO HUBS MTCH FDX PLAN SNAP QRVO MOMO ENPH GRWG EH GMBL, cash 0.1%
Stocktrader
Hi Saleem,
Sold GMBL @ 15.86
I had tried to sell on Friday morning at 18.25 but missed by a few pennies. It could be hurt by both re-opening and higher interest rates. I like the story, but will try for lower levels.
Stocktrader
Hi Stocktrader,
Last week Down 5.09%
YTD Down 1.23%
Saleem
Hi Saleem,
Trimmed MTCH @ 145.08
Trimmed MOMO @ 15.95
Bought OLED @ 200.12
I was a little too concentrated in dating and read some glowing analyst reports today for OLED.
Stocktrader
Hi Stocktrader,
Good luck with OLED..
Saleem
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