Sunday, May 23, 2021

US stock market stuck in neutral.....

 US stock market is going nowhere fast

US stock market not showing technical strength

Rotation in selling new focus

All sectors looking like bargain

Confused trader do not know what to do

YES....It Is true lot has changed lately...

It Is a direction less TAPE

S&P 500 & DOW are staying above 50 DMA...

Nasdaq SOX & Russell 2000 staying below 50 DMA

TAN Solar ETF staying below 50 DMA & 200 DMA

It Is very hard to make any sense of most sectors.....

I have a feeling that we will mark time or downward direction until more clarity comes as to direction of Interest rates.....10 year rates will be in " hyper focus "

There is a concern that IF Fed support is removed ....then market will be be very weak....everybody is trying to handicap as to WHEN.....

Interest rates are @ historical low...normalization of Interest rates are a given...what Is not given as to when......

IF interest rates starts going UP...Market will become weak to digest implication of this  " major change "

SO...we are in pre interest rate hike stage, where uncertainty has crept up

It Is becoming a " wait and see stock market "

Then there is Crypto Coin showing major crack...currently around $33,000 for Bit Coin, recent low is $29000....retest may take it further down...somehow even numbers becomes support like 20000...This number may Impact stock market like last time until Bit Coin shows stability.

NOW....the question Is how to deal with so many uncertainty.....

One simple solution...reduce exposure.....

Take quick profit.....

Strategically do buying

So lots to analyze going forward....

Good luck with your own analysis and comfort level.

BLOG does NOT give buy or sell.

Saleem

6 comments:

stocktrader_1996 said...

Hi Saleem,

Last week: +6.19% (YTD: +16.10%)
Notable Leaders: DDD BHVN APP PSNL PATH SUMO PLCE DV SNAP
Notable Laggards: AGCO GRWG

It was a week of many winners as the story/growth stocks rebounded in the face of profit taking elsewhere in the market. I'm not sure how long this lasts, but I think a lot of the numbers will surprise people - I had 6 stocks up more than 10% for the week. My thoughts are indeed that inflation is transitory, and that should keep the Fed accommodative for a long time. Even with some Fed interaction, a 10-yr interest rate at 2.5% or below would be the most conducive time for investing in history. I think the main catalyst for muted interest rates will be the falloff in consumer spending later this year and oversupply of currently double-ordered and/or supply-constrained materials. The Russell rebalance also happen in about a month, and often provides a lift to new stocks that need to be added.

Holdings: DDD AGCO BHVN PATH FSLR HUBS DV PSNL SUMO ESTC SNAP PLCE AVLR GRWG EH GMBL, cash 0.0%

Stocktrader

Stocks100 said...


Hi Stocktrader,

Last week UP .73%

YTD Down 1.69%

Saleem

stocktrader_1996 said...

Hi Saleem,

Sold AVLR @ 128.59 to raise cash

Stocktrader

stocktrader_1996 said...

Hi Saleem,

Bought GAN @ 16.45 for rebound try

Stocktrader

stocktrader_1996 said...

Hi Saleem,

Sold HUBS @ 513.88 on recent rebound

Bought PHM @ 56.36 on good valuation and lower recent costs

Stocktrader

Stocks100 said...


Hi Stocktrader,

Good luck with GAN & PHM

Saleem