US stock market is all set to go higher...
US stock market has gone through many digestive process...as listed below :
-Interest rate trend
-Fed tapering policy
-Inflation
-High Oil prices
-High Commodity prices
-Production issues
-Shipping issues
Most of the above issues have been in the forefront for many months and was impacting US stock market. Stock market jitters did affect Fed & other policy makers resulting in clarity and action.
All seems to have been discounted by zig zagging stock market action.
After all is said & done, US stock market has new emerging sectors as normalcy returns to the world and USA in particular.
Based on all technical indicators like RSI, 50 DMA & price action...XLE is a runaway leader. XLE is sporting an RSI of 74.70 and is @ highest level above 50 DMA and 7 year high in prices...
2nd biggest gainer lately is XLF famous financials as they say when " financials move higher market is looking @ new momentum "...RSI @ 62.87...move higher has just started...
XLB materials index is showing renewed strength with RSI @ 62.80...
TAN is 4th best performer based on RSI @ 60.99
Who could have predicted that none of the 3 biggest index DOW, S&P 500 & Nasdaq plus SOX will not make it to top 4 performing ever.....do not recall this happening ....
Worst yet Russell 2000 is way behind @ RSI of 56.12 in IWM....
How things have changed lately in US stock market..
Ironically SOX is the weakest of all sectors in my universe of 10 Index / Sectors with an RSI of 51.40
SO....please pay attention to this new reality of US stock market, it has changed drastically and new sectors as listed above are running away...
Gaming & Casino stocks are looking good especially MGM which made a new multi year high...part of my long term favorite stock always in my portfolio and have traded many times in this pandemic.
Bitcoin to $100,000 is a foregone conclusion.....it was around $27000 not too long ago....
Sometimes Wall Street wisdom does not hold true...so adjust very quickly to new TAPE...
Good luck with your own thesis and comfort level...
BLOG does NOT give buy or sell.
Saleem
14 comments:
Hi Saleem,
Last week: +1.34% (YTD: +44.62%)
Notable Leaders: AA ESTC FSLR SRAD BMBL
Notable Laggards: ZENV EMR BMEA ZIP CHK MNST
I covered my short hedges this week and went full stock-picking long. A few key winners helped propel the portfolio, and year end effects can help this rolling bull market keep going. Most of the major problems in the world has seen their worst I believe, like the energy shortage, covid 3rd wave, Fed tapering fears, and the China crackdowns. From here we've likely built a good base from which to move finally higher out of the range. Earnings reports have been supportive, and labor costs remain one of the few problematic issues for some companies, but could boost consumer spending in the middle class for years and years to come.
Holdings: ZIP AGCO ESTC FSLR GM AA SNAP QRVO BMBL PLAY CHK ELY GRWG MNST KRUS HCAT SRAD BMEA BLNK ZENV, cash 0%
I just noticed this is the first time I've ever had 20 stocks in the portfolio. I guess it has grown large enough finally to accommodate that situation, and I'm always finding good ideas in which to invest.
Stocktrader
Hi Stocktrader,
Last week UP 2.83%
YTD UP6.52%
Bought SNAP in pre market @ $78.20
Saleem
Hi Saleem,
Love the SNAP!!!
Sold BLNK @ 28.53 on surprisingly poor price action in the face of positive news flow
Stocktrader
Hi Saleem,
Added to some smaller positions: HCAT ZENV KRUS SRAD
Stocktrader
Hi Stocktrader,
Good luck with more HCAT ZENV KRUS SRAD
Any news on SNAP...just dipped $2.44???
Saleem
Hi Saleem,
I didn't see anything - it can be surprisingly volatile at times when big money moves in and out of it.
Stocktrader
Hi Stocktrader,
Thanks!
Saleem
Hi Stocktrader,
Sold 40% RIOT @ $30.47
Saleem
Hi Saleem,
I may have found the culprit, as well as another note from today:
Snap facing tougher comps in Q4, 1H22, says BofA
BofA analyst Justin Post maintains a Neutral rating and $80 price target on Snap shares ahead of the company's earnings report on October 21. The firm's Q3 revenue estimate is $1.095B, up 61%, above management's guidance of 58%-60%, Post tells investors in a research note. The analyst expects Snap to meet or beat user trends, but notes that due to tougher comps for the sector in Q4 and 1H22, near-term deceleration may be a sentiment headwind. Snap shares are down 4% to $74.13 in late morning trading.
KeyBanc ups Snap price target to $90 ahead of quarterly results
KeyBanc analyst Justin Patterson raised the firm's price target on Snap to $90 from $88 and keeps an Overweight rating on the shares ahead of quarterly results. The analyst expects positive revisions to persist given Snap's unique position - return on ad spend continues to increase along with cost per impression. Coupled with Advertising Week presentations likely to signal more progress in augmented reality, Patterson believes 50%-plus annual revenue growth appears "increasingly likely."
Stocktrader
Hi Stocktrader,
From $2 UP to $4 DOWN shows BofA note carried more weight vs Keybank...
Handicap time....
Saleem
Hi Saleem,
Nice job with profit taking on RIOT!
Stocktrader
Hi Saleem,
Also looks like some bearish options activity:
https://www.benzinga.com/markets/options/21/10/23423963/snap-whale-trades-spotted
Stocktrader
Hi Stocktrader,
Thanks for your ongoing updates on SNAP.....does not look good
Saleem
Hi Stock trader,
Added 50% SNAP @ $75.50
Saleem
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