Sunday, April 25, 2021

US stock market on the mend......

 US stock market has gone through many gyrations lately.

Capital Gains tax is lurking / simmering

3rd wave playing havoc in many places like Michigan, Canada, India, Pakistan to name a few ..

Borders are being closed in Canadian intra province travel

US, Canada & Mexico border remains closed till end of May 14 months already....

All this plus Interest rate direction seems to crop up as an issue

Canadian Vaccination is going @ snail pace, only 3.2% got first vaccine so far, my second vaccination is almost 4 months later......which is normal duration for everyone.....

OF all the reasons listed above, COVID-19 3rd wave remains as real issue to impact economies of the world plus stock market.....

Last Friday, stock market close was full of optimism....

Earnings have been better than expected

Important earnings continues this week, TSLA, AAPL, MSFT to be in focus along with many others.....

Here is the RSI read for a take in sectors / index :

S&P 500          65.32

XLB                 63.65

DOW               62.92

Nasdaq          59.43

GLD              56.89

IWM              55.08

SLV              54.24

TAN             54.06

JETS           45.78

XLE            44.56

Surprisingly Energy / Oil stocks have slumped to last place or most oversold position, I am overweight in this sector with CNX APA SU....

Airlines have stumbled badly on poor earnings reports

Solar stocks have lost majority of its gains very quickly

Steels, Copper, Nickle and Zinc are 2nd best performer and remains in bull mode

Nasdaq & Russell 2000 remains undervalued and are coming back....

SO....lot of optimism in US stock market for a quick GDP turnaround, same story all over the world from China to Canada.....

A well diversified portfolio is a smart way to optimize gains a mix of top 3 to bottom 3 may do the trick.

Good luck with your own interpretation of this YO YO market.

BLOG does NOT give buy or sell.

Saleem


5 comments:

stocktrader_1996 said...

Hi Saleem,

Last week: +0.39% (YTD: +17.67%)
Notable Leaders: PATH PSNL
Notable Laggards: GMBL FDX ESTC

With the slimmed-down portfolio, there wasn't much movement this week. I am trying to be very patient in re-entering, and I missed a good opportunity this week in some of my favorite names. Is this really a market where a 2-3% pullback is as good as it gets? Maybe. I do think there's a larger pullback coming as the last of the stimulus checks have been issued, the infrastructure bill might be toned down, and tax rates may increase for corporations and individuals, but so far the market hasn't blinked. I trust that I will find the right opportunities eventually.

Holdings: FDX SNAP PSNL ESTC PATH BHVN GMBL, cash 53.0%

Stocktrader

stocktrader_1996 said...

Hi Saleem,

Sold SNAP @ 61.05 to take profits

Stocktrader

Stocks100 said...


Hi Stocktrader,

Last week Down .12%

YTD UP 4.52%

Saleem

Stocks100 said...


Hi Stocktrader,

Added 200% MGM @ $41.65

Saleem

stocktrader_1996 said...

Hi Saleem,

Good luck with added exposure!

Stocktrader