US stock market has 2 personality...
Split personality involves XLE, JETS & IWM
Nasdaq & SOX has a " problem "
US stock market has shifted into " restart mode " in a big and decisive way...
XLE / Energy related stocks are a huge success story, sporting an RSI of 73.53...a number not predicted & hoped for by many famous pundits.....
Nasdaq & SOX are really struggling with RSI of 44.21 & 41.02...this after rally of many days........
JETS has an RSI of 53.92 higher than best of big 3 DOW @ 52.30
Numbers do not lie.....ever
S&P 500 RSI @ 48.49 still below 50 where most traders jump in with ascending formation....
In case my point is not very clear XLE has made a new high with Oil & Natural gas @ 7 year high...
Most trading accounts are playing catchup and are not sure what to do now....
My suggestion to all traders / investors is to have exposure in both which means Oil stocks and Natural Gas stocks plus refiners / Integrated oil companies...
Another exciting area in Oil / Gas is junior exploration companies...which can jump 10 fold based on their discovery and production profile.
Gaming / Hotels are another exciting area with "reopen theme "...they are marking time to make another move higher....
SO...lot of exciting opportunity in many reopen theme and should be in every portfolio.
Good luck with your own analysis and comfort level.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hi Saleem,
Last week: +0.88% (YTD: +42.71%)
Notable Leaders: GM CHK SQQQ(sold)
Notable Laggards: PLAY AA DDD
A choppy week ended with tech stocks higher after a rough stretch. My short hedges did good work early and then I swapped some of that for long exposure. I think the biggest risk to the US and world economy is high energy prices, so I still have some protection in case of large adverse events or price action. Now that earnings season is upon us, any winner post-earnings will likely see a drift upwards into year end, and that's usually one of the safer ways to play November and beyond.
Holdings: TZA(14%), AGCO FSLR ZIP ESTC GM EMR PLAY SNAP CHK MNST KRUS AA DDD GRWG BMEA ZENV, cash 1%
Stocktrader
Hi Stocktrader,
Last week Down 1.51%
YTD UP 3.69%
Saleem
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