US stock market has transformed ....
Delta variant news has been discounted for the most part....
Reluctantly and by policies vaccination is being enforced..
High inflation is a reality known to market and being digested
Tension between US & China is dialed down a notch with the release of Huawei owner's daughter & CFO from Canadian Custody...she was welcomed back as State hero live on Chinese TV...
Chips shortage continues as very few companies are interested in making those cheaper chips, they are all racing for high end pricier chips for huge cloud servers...
US stock market staged a huge comeback from selling to below 50 DMA....
DOW is the only major index still slightly below 50 DMA...
SOX among technology is near all time high...a very good sign....
Guess which sector is strongest in US stock market based on RSI...it is Airlines JETS with RSI of 64.93...who could have predicted this.....
Second most sought after sector is Energy XLE is @ 61.54 RSI.....too many skeptics, winter is here Nat Gas is @ 3 year high.....
SOX is @ number 3 with RSI of 57.39.....lots of room to run with series of new highs to come...
DOW is the weakest with RSI of 49.80...
Nasdaq & S&P 500 with RSI of 51.87 & 51.14 has lot of room to catch up.....
Based on sentiment which had become extremely bearish and much needed pullback has occurred, we may be looking @ smooth sailing to series of new all time highs.....
Jobs report on Friday will get its 15 minutes fame...but will move on to real economic activities worldwide.
Most countries are relaxing travel restrictions which should bolster economic revival....
SO...all in all, we are looking @ many positive for stock appreciation going forward.
Please allocate more to " restart " than technology.....
Restart are opening up Airlines, cruise lines, casinos, hotels and energy which could be the biggest beneficiaries.
Good luck with your diversified portfolio and your own analysis / comfort level.
BLOG does NOT give buy or sell.
Saleem
3 comments:
Hi Saleem,
Last week: +0.11% (YTD: +37.42%)
Notable Leaders: PLAY LYFT ZIP
Notable Laggards: ZENV FSLR FDX FCX
The indices ended marginally higher after a huge decline to start the week, and the portfolio ended nearly flat as well, but with much less volatility due to the large short hedge. The market shrugged off surging interest rates after better economic activity and the Fed taper talk, which may indicate smooth sailing for year end, but we still have a bit of work to do. If we can get through October with continued strong price action, there's nothing stopping a further run. I am still highly concerned about the supply of stock in speculative growth stocks, so I'll likely stay away from that area of the market as I feel the risk/reward ratio is skewed negatively.
Holdings: SQQQ (23%), AGCO ZIP PLAY LYFT FSLR PHM MNST FDX BMEA ZENV, cash 24%
Stocktrader
Hi Stocktrader,
Last week UP 1.42%
YTD UP 5.49%
Bought PLTR @ $27.29
Saleem
Hi Saleem,
Good luck with PLTR!
Stocktrader
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