US stock market has split personality....
Some sectors are @ overbought levels...
Other sectors are ready to move UP
Some sectors are oversold......
Rotation is very evident daily...
Some days most sectors are in positive mode
Other days only narrow movement in few sectors of market.
Then there are those days when everything are in deep red.....
S&P 500 is @ new all time high.....
DOW & Nasdaq are very healthy and near all time highs
Russell 2000 near all time high
XLE has performed like a charm and is @ 6 year high
SOX is ready to join all time highs IF MU earnings can dislodge negativity about Chips shortage.
XLF is stuck in mud.....above support....can it find traction here...NOT based on 10 year rate, it needs to go near 1.8% to get it moving....
BUT there are some very weak sectors, most are familiar to traders and are avoiding it....
GLD, SLV & XLB are near lowest point in a while with RSI of 35.11, 38.83 & 39.11..
BTCC.TO is a bitcoin ETF in Toronto Canada with an RSI @ 36.25, there are dire prediction of bitcoin hitting $20,000. In my opinion around $27,000 I may buy this ETF again.
TAN is strange with RSI @ 65.65 but slightly above 50 DMA & hair below 200 DMA...there are weak & strong stocks in this segment, one needs to do fundamental analysis and make opportunistic trades..
As you can see, there are many ways to participate in this rotation which seems to be new game in town.
Keep a very diversified portfolio with less exposure and more focus on oversold sectors as they are ready to roll like cruise lines and airlines...great bargain there. Have patience and conviction with 20% weighting.
Good luck with your own analysis and comfort level.
BLOG does not give buy or sell.
Saleem
7 comments:
Hi Saleem,
Last week: +2.16% (YTD: +28.81%)
Notable Leaders: DDD FSLR GRWG AGCO ELY
Notable Laggards: TZA ZIP
The market charged higher this week, and the portfolio stocks did well while the hedges lost value muting the overall performance. I am struggling to find value in the market at this price level as extreme fiscal and monetary stimulus are on the cusp of waning (even the infrastructure bill is nothing like the direct payments). Even though we may grind higher still in the absence of any true negative catalyst for now, I think most of the opportunities have passed for now and I remain firmly tilted neutral.
Holdings: TZA (20%), SOXS (17%), DDD BHVN FSLR ELY AGCO GRWG UPST ZIP, cash 8%
Stocktrader
Hi Stocktrader,
Last week UP 5.18%
YTD UP 11.43%
Saleem
Hi Stocktrader,
Sold SOL @ $9.30
Saleem
Hi Stocktrader,
Bought MGM @ $42.38
Saleem
Hi Saleem,
Nice trade on SOL - good luck with the swap!
Stocktrader
Hi Stocktrader,
Doubled my position in HST @ $16.80
Saleem
Hi Saleem,
Good luck with more HST - dip buying opportunities today!
Stocktrader
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