After 4 days of extremely poor internals, US stock market came to life on Friday and jumped to new all time high in 3 major Indices @ the same time, quite uncommon.
Above TAPE action is a clear indication that 4 day of weak internals is all we needed to shake off negativity.
Friday's TAPE was significant as all sector participated and internals were strong, a technical confirmation that " all is well "
Banks earnings are on tap this week, this may be an inflection point for financials also. buy better performing financial...GS & MS may jump higher with their earnings.
Despite Delta spreading worldwide and new shutdown in Australia, most Europe & world is opening UP their economies full blast.....more positive vs minor negative.
Delta will force non believers in COVID-19 vaccine to get religion.....thus a negative may have positive outcome.
Q2 earnings may prove to be the-low point thus buying strong Q3 earnings projection should be bought aggressively.
TAPE has discounted many bad earnings report and may look to guidance as trend.....
Many sectors are undervalued and are trading near recent lows Airlines, Cruise lines, crypto stocks all are looking like a bargain.
YES try to underweight high RSI stocks as they need rest / digestive phase or upside may be limited near term.
SO....focus on lower RSI stocks in all sectors based on your own comfort level. Gains could be well above average.
Try some aggressive ETF also like famous ARKK for quick gains......who said tagging along genius is a bad thing...
All in all, we are looking @ very good setup technically speaking, gains could be fast and much higher than normal in near term.
Good luck with your own take of this market and your own comfort level.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hi Saleem,
Last week: +0.62% (YTD: +30.85%)
Notable Leaders: BHVN TZA SOXS
Notable Laggards: GRWG ZIP BLNK DDD
Despite the move higher in the major indices, there was weakness under the surface as both small caps and semiconductors declined (and consequently my short hedges gained). We are in a normally seasonally weak period as investors take profits after earnings reports, and I think that might happen again as YoY growth rates liked peaked in the 2Q. I also worry about the immense supply of stock that's come into the market through IPOs and SPACs in the last year, which could ultimately prove too "heavy" for the market on a longer term basis. These factors lead to me keep with the short hedges at least for a little while longer.
Holdings: TZA SOXS BHVN FSLR GRWG ELY AGCO ZIP BLNK DDD UPST DMYI, cash 1%
Stocktrader
Hi Stocktrader,
Last Week Down 1.52%
YTD UP 11.84%
Saleem
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