US stock market has baffled many into understanding what has changed so quickly.
COVID-19 was supposed to negatively impact world economies. It has been relentless since March 2020, few countries are facing 4th wave most are in 3rd wave.
Deflation should be happening
All commodities should be cheaper
@ home stocks should be going UP & UP
Chip shortage should affect earnings negatively of every tech laden company.....
BUT.....
All has reversed.....
Best performing sector is " not technology "
@ home stocks have slumped
Inflation is a big news item
Commodities are @ all time high or near to
Earnings are improving in technology and other sectors.....
Best performing sector by far is XLB which is sporting an RSI of 75.42
DOW is the second best performing with an RSI of 70.54
3rd best sector is XLE with an RSI of 69.71
Nasdaq & Airlines are both sporting RSI of 49.51 & 49.96
Solar stocks are bargain @ 32.68 RSI, cheapest in my universe.
Even ARKK is @ bargain @ 34.64 RSI
S&P 500 has RSI of 66.28
Russell 2000 RSI is 52.85
SOX @ low low RSI of 47.98
See how market has changed all of a sudden
What was laggards until 1 month ago like energy is near top.
It is very tough to understand why JETS may be lagging while economy is opening up.
That proves It Is tough to follow anything in a blind manner, there are winners and losers in a broad theme also.
It Is highly recommended to play rotation almost on a daily basis in a very broad based portfolio.
I will call today's market as the toughest in a long time as we do not see a clear cut winner.
Base metals may be too hot to handle @ this stage.
Good luck with your own thesis and comfort level.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hi Saleem,
Last week: -3.55% (YTD: +13.50%)
Notable Leaders: AGCO FDX
Notable Laggards: AVLR SNAP DDD ESTC PSNL GMBL
It was a week of survival as many of my story stocks got crushed this week. The few large, economically sensitive stocks in the portfolio helped marginally offset some of the losses. Given the huge price declines in many of my stocks, I feel like there is value to be had, but the market may not buy this story for a while still as economic re-opening and surging raw material costs continue. I do wonder how consumer spending will play out once the stimulus checks and extra unemployment benefits end.
Holdings: AGCO HUBS PSNL FSLR QRVO BHVN PATH GRWG PLAY SNAP ESTC PLCE AVLR EH GMBL DDD, cash 0.0%
Stocktrader
Hi Stocktrader,
Last week Down 1.39%
YTD UP 3.54%
Saleem
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