US stock market has confused many participants since COVID-19.
We all have have been surprised initially by the strength of stay @ home stocks which quadrupled.
Then we were surprised by the strength of Vaccine related stocks which also quadrupled.
Then we thought that this is too simplistic focus, cannot last forever....
So many focus were shifted to Fed & and its policies....
Inflation was ramping big time..
Chips shortage developed
Fear of interest rate hikes were talked about
Shipping cost jumped many fold
Oil jumped to 7 year high
Crypto currency were making new highs
World economies were opening up
But shortage of many goods persists
Labor were in short supply all of a sudden
Wages spiked to new highs in all sector
Despite all of the above challenges, somehow Nasdaq & SOX seems to be winning big time
Confused or not Technology kept making new highs..
Famous technology names are the easiest way to riches.....
Those who handicap their bets are losing out big time, as same old same old keep working.
When I look @ RSI SOX is strongest with RSI of 74.70 and is hitting new all time high...
Nasdaq is also hitting new all time high with RSI @ 69.13
Can you imagine even well known DOW 30 stocks are gone to the dogs with RSI @ 46.29
Russell 2000 is struggling and near 50 DMA with RSI of 48.65
Absolutely 3 weakest in my universe is JETS, XLE & XLF their RSI @ 36.59, 37.45 & 38.94
SO this is not a market of " all boats are being lifted "
This is a very " selective stock market " where strong is getting stronger " & " weak getting weaker "
A lesson we all need to learn & adjust quickly this reality of " current Wall Street "
SO let us go back to drawing board and get involved in winning group as soon as possible...
Time & $$$ waits for nobody!
Good luck with your own analysis & comfort level/
BLOG does NOT give buy or sell.
Saleem
10 comments:
Hi Saleem,
Hope you are feeling better after this weekend!
Last week: +0.65% (YTD: +49.78%)
Notable Leaders: IONQ RBLX MNDY BLNK BMBL (all sold!)
Notable Laggards: ZENV GMBL BMEA AGCO GRWG PLAY ESTC
The portfolio squeaked out a win thanks to some key short term winners (IONQ +63%, RBLX +23%), but underneath the surface was very weak. The major indices echoed this trend with the Russell 2000 down 2.85% despite the NASDAQ and S%P 500 powering higher. We are most certainly in a trend of the winners getting even more flows, but the disparity this week was dramatic, and I wonder if we are pulling ahead a lot of those normal year-end flows for tax-selling and portfolio-marking. There is no doubt portfolio managers want to show certain stocks in and out of the portfolio for year end, but I think December might be a bit of a mean reversion and a look toward bargains for 2022. It is difficult to balance many of these valuations with future growth prospects, especially as the Fed undergoes a withdrawal of stimulus. Everyone should be mindful of both potential upside and downside in their favorite stocks.
Holdings: ZIP CHK AA LITE ESTC AGCO SNAP GM PLAY AXON KRUS ELY ZENV BMEA GMBL, cash 18%
Stocktrader
Hi Stocktrader,
Thanks for your help with recap for BLOG.
I have recovered 80% rest will follow hopefully.
Last week Down 4.49%
YTD UP 3.80%
Saleem
Hi Saleem,
Bought BLNK @ 41.16
A good chart and "downgrade" today.
Stocktrader
Hi Saleem,
Finally got my RBLX back @ 133.91
It is a must-own for year end in my opinion.
Stocktrader
Hi Saleem,
Rebought IONQ @ 24.14
Stocktrader
Hi Stocktrader,
Good luck with your dream stock RBLX,BLNK, IONQ..
Saleem
Hi Saleem,
Sold GM @ 63.26
I'm just not convinced on the competitive landscape for autos
Bought MNDY @ 320.76
Added to RBLX @ 118.89
Stocktrader
Hi Saleem,
Sold LITE @ 90.65
Optical is always a tough business and they are getting further into it.
Bought UPST @ 200.82
A fantastic growth financial that has pulled back dramatically.
Stocktrader
Hi Saleem,
Added to BLNK @ 38.22
Added to UPST @ 200.76
Stocktrader
Hi Stocktrader,
Good luck with UPST MNDY and more additions....
Saleem
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