US stock market is giving many type of investors & traders to benefit from their strategy.
Some sectors have performed way better than other lagging ones.
Based on current RSI read US real estate is best performing with RSI read of 74.68 in IYR.
Nasdaq is 2nd best with RSI read of 71.10....no news there, everyone is in that sector with their favorite stock.
Most undervalued or lagging is XLE @ 49.19....this sector has been most erratic lately...
Rest of the sector are all into neutral read except S&P 500 which is @ 66.72 RSI.....
DOW is lagging badly @ 54.22 RSI...this number is where most other sectors are going +- 2
SOX RSI is @ respectable 60.58....semiconductor chip shortage is playing heavily.
Most surprising impact of COVID-19 is Chips shortage which may last for another full year until it is normalized.
Other surprising and serious thing is sky rocketing " freight charges " which is impacting every item from groceries to cars to machinery....this may take another 6 months minimum before it eases a bit...
Delta variant is playing havoc everywhere and a new variant is on the way which is 5 times more intense and spreads fast, rumor has it current vaccine does not work on this new variant from Africa.
Looks like stay home may have more room to run and recovery or reopen may be slower than anticipated.
Under these circumstances, a broadly diversified portfolio with a heavy dose of patience plus conviction is the only answer.
Looks like all investing thesis is being put to quick challenge with emerging variant, chip shortage & high high freight charges.
So shop wisely for any consumable items and have ample stock @ hand as prices are going higher.
Inflation is here to stay like it or not.
Gasoline prices are @ its highest level which is another surprise.
All in all lot of challenges for world economy and investors / traders.
Play it safe and be happy with small victories and cherish it.
Good luck with your own thesis and comfort level.
BLOG does NOT give buy or sell.
Saleem
6 comments:
Hi Saleem,
Last week: +1.66% (YTD: +39.59%)
Notable Leaders: IRNT ESTC BMBL DDD
Notable Laggards: AMRS GMBL ELY
In a week that saw new highs for some indices, the portfolio performed well also. The low volume was a major characteristic, but this week should see improved activity as the summer vacation period officially expires. With less than four months until the year ends, traders and investors will likely look to stocks with relative strength as capital gains taxation potential will limit selling until next year. It is becoming harder to find fresh ideas, so my bias will be to trim on extended runs to have cash for any dip buying.
Holdings: BMBL FSLR SNAP QRVO ESTC ZIP AGCO PHM ELY MNST DDD LYFT IRNT ZENV GRWG AMRS GMBL, cash 4%
Stocktrader
Hi Stocktrader,
Last Week UP .57%
YTD UP 6.29%
Saleem
Hi Saleem,
Sold half IRNT @ 24.70 to lock in some profits
Bought TPR @ 40.97 on good earnings and robust wage inflation to spur more consumer spending
Stocktrader
Hi Stocktrader,
Bought LSPD.TO @ $147.80
Saleem
Hi Stocktrader,
Good luck with TPR....
Good idea to book half profit.
Saleem
Hi Saleem,
Good luck with LSPD.TO!
Stocktrader
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