Sunday, August 22, 2021

Message of US stock market.....

 US & world stock market is looking for many answers.....

How fast Delta variant going to spread

When Fed Taper will start

Chips shortage impact on many sectors

Deficit financing impact worldwide

Chinese slowdown in economic activity

How to check fake vaccine documents

September school impact on children exposure as adults may spread Covid-19 to minors

Used cars prices impact on economy

Gasoline price impact on travel, when it goes UP does not come down.....

SO...with so many question marks, markets are trading in a very narrow range...

Strong sectors / stocks tested 50 DMA and made a comeback.

Weak sectors and stocks are stuck near lows and stuck in 200 DMA area....

Neutral sectors / stocks are in between 200 DMA & 50 DMA

Market verdict is clear......needs a decisive approach & results on many fronts......

While we sort all the mess, market is in a holding pattern

Market has a history of marking time until it sees " more clarity "

Vaccine or not to vaccine is taking center stage in many countries...employers are mandating or lose your job approach

Negative Covid-19 results are being demanded for transit and crowd situations in many countries to prevent a devastating wave of Delta variant....

It is NOT business as usual for world stock market, Hong Kong is in Bear market......

US stock market is swinging near 50 DMA which is not healthy......

For active investors / traders needs understanding of current uncertainty 

Comfort level needs to be very high with each strategy in stock selection, dead stocks are staying dead

Only few high profile stocks are keeping market averages above 50 DMA...IF they fall we are heading lower in a hurry...

SO...staying calm, patient and high comfort level may be the only approach until " we can see clearly "

Good luck with your own strategy!

BLOG does NOT give buy or sell.

Saleem

2 comments:

stocktrader_1996 said...

Hi Saleem,

Last week: -3.93% (YTD: +28.55%)
Notable Leaders: ZENV AMRS
Notable Laggards: GMBL LYFT ZIP AGCO DDD GRWG

It was a tough week for nearly all stocks and the portfolio had its worst weekly performance all year. I am still comfortable with the composition, and look for some bargain hunting to lift my names soon. I am really not worried about the Fed and tapering given the resurgence of the virus in the last month, and so I won't get sucked into the game of worrying if others will worry and sell their stocks. Staying the course with confidence is most often the right call in the absence of any truly bad news.

Holdings: FSLR ESTC SNAP QRVO ZIP PHM AGCO BMBL ELY MNST ZENV LYFT DDD AMRS GRWG PSNL GMBL, cash 0%

Stocktrader

Stocks100 said...


Hi Stocktrader,

Last week Down 5.09%

YTD Loss 1.29%

Saleem