US stock market tested and retested support and finally headed higher.
Wednesday was the retest with lower lows closing above low of the day.
Thursday was retest for Nasdaq with higher lows and reversal with positive close.
Friday all Indices were sharply higher closing near high of the day.
Friday also was a confirmation of this rally with a strong close.
US is coming back to normal activities after CDC endorsed no mask IF both shots are taken by everyone, a huge relief to all.
There was a sense of never ending cycle of COVID-19 waves BUT CDC showed a way out of this worldwide trauma.
CDC should be given a huge " thank you " by entire world for giving word of confidence that end is here in a functional form.
There are many fast repercussion of this which can be listed below :
Reopening of many Industries will be in fast forward mode
Worldwide travel can be happening with CDC guideline of Mask ON
Most offices can be opened.
Most Restaurant can open without too much issue
Social distance will be maintained in any group setting, be it in airplane, cruise ship, concerts, subway, restaurants....
Stock market will also feel a " regrouping " instead of @ home or reopen....all sectors can be evaluated on its normal merit like Sales near term trend & profitability direction.
Again market profile will change in a hurry.
Any sector which has lagged due to uncertainty arising because of COVID-19 will be bid UP.
New leadership may emerge...
Please pay attention to volume and price action.
Stocks may react very quickly to a more normal world.
I expect a " fast furious " TAPE going forward.
Expect series of new all time highs
Small cap may be in vogue again
SO put your thinking cap ON and pay attention to biggest gainers list to get a sense of new direction.
Good luck with your own analysis and comfort level.
BLOG does NOT give buy or sell.
Saleem
4 comments:
Hi Saleem,
Last week: -3.67% (YTD: +9.34%)
Notable Leaders: DDD APP PATH ESTC
Notable Laggards: GMBL PSNL EH GRWG QRVO AGCO
It was a pullback week for the markets, and the portfolio slid in sympathy. Although there are starting to be a few bright spots, I think it is unclear if the market has any true legs left. I am particularly watching the consumer spending numbers to see if there's a falloff after the last stimulus check has been written. I think the inflation fears are overblown as a significant portion of the problem is on the supply side. As world economies open back up, I look for a more balanced supply/demand dynamic, and we also might be subject to a double-ordering hangover in chips or materials. I have positioned myself in the growth stocks for now as I expect an oversold bounce from these levels and expect technical buying into the Russell rebalance in late June.
Holdings: AGCO HUBS FSLR PATH BHVN QRVO DDD ESTC PSNL SUMO GRWG SNAP AVLR APP EH GMBL, cash 0.0%
Stocktrader
Hi Stocktrader,
Last Week Down 5.96%
YTD Down 2.42%
Saleem
Hi Stocktrader,
Bought PLTR @ $20.10
Saleem
Hi Saleem,
Good luck with PLTR!
Stocktrader
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