Sunday, July 25, 2021

US stock market rally to continue.....

 DOW S&P 500 and Nasdaq closed @ new all time high...

Nasdaq is the strongest and sporting an RSI of 65.67, highest in my universe.

S&P 500 with RSI of 63.75 is second strongest among Indices I monitor.

DOW is @ 58.21 RSI...much more room to go higher

SOX with RSI of 54.25 is a lagging

TAN or Solar RSI @ 47.67

XLB or materials RSI @ 47.05

IWM or Russell 2000 RSI @ 45.25.....rally has not started yet...

JETS with an RSI of 40.99 has not taken off yet...

XLE with an RSI @ 37.30 is @ bargain level considering price of Oil and earnings potential...

This is a very narrowly focused market with Technology in major uptrend...

DELTA variant is taking a toll in other sectors as they are stalled for now...

It Is important to have a mix of technology plus other sectors as major technology companies are reporting this week....

So far earnings in technology is above expectations.....

Patience & conviction is required even in a diversified portfolio, hopefully uptrend will broaden to other sectors as we enter this weeks trading.

This market has been tough unless you were in technology stocks...

No rally can last unless we go through rotation to other sectors.

COVID-19 gave a huge boost to technology and now DELTA variant is doing the same, lucky twice based on your portfolio weighting.

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: +1.54% (YTD: +33.82%)
Notable Leaders: SNAP ESTC AMRS ELY BMBL GRWG
Notable Laggards: SOXS PSNL

The portfolio performed admirably despite the big decline in the huge SOXS hedge. I unwound some of the TZA hedge early in the week in favor of some new long positions and, although that worked well, I didn't take dramatic enough unwinding measures that would have helped the portfolio more. I think the magnitude of the rebound from Monday's deep decline directly into new all-time highs surprised many, and the resilience of the market in the face of several negative catalysts can not be ignored. It remains a "buy the dip" situation until proven otherwise. Earnings this week from several technology stocks will determine short term direction.

Holdings: SOXS (21%), SNAP FSLR ELY BHVN AGCO ZIP ESTC BMBL GRWG UPST DDD PSNL AMRS GMBL, cash 0%

Stocktrader

Stocks100 said...


Hi Stocktrader,

Last week UP .83%

YTD UP 3.93%

Saleem

stocktrader_1996 said...

Hi Saleem,

Sold BMBL @ 52.11 ahead of the lockup expiration next month

Stocktrader

Stocks100 said...


Hi Stocktrader,

Good luck with new allocation $$$$

Saleem

stocktrader_1996 said...

Hi Saleem,

Bought MNST @ 96.37 on breakout potential

Stocktrader

Stocks100 said...


Hi Stocktrader,

Good luck with MNST!

Saleem