Sunday, November 28, 2021

US stock market faces a new challenge OMICRON.....

 Everything was going good in US & world stock markets, economy was opening up in an accelerated format......

Oil was hitting highest point in 7 years.....

Most Indices were making series of new all time highs.....

Fed had steady & continuity in leadership under Powell..

Stimulus bill passed in USA.....

AAPL was making series of new all time highs as holiday sales were percolating...

Bitcoin was hitting new all time highs...

AND YES...there was lot to be thankful on this "Thanksgiving day "

BUT

Everything was put on hold by a variant of COVID-19 which is much faster to spread with no known cure which now has a name as of Friday " OMICRON "

Most nations are very quickly reacting to control this new variant by imposing total ban from many countries in Africa......

South Africa is upset that restriction is being imposed and feels being penalized for discovering OMICRON instead of being appreciated...OMICRON did not originate in South Africa for the record....it was a neighboring country.

The question is what OMICRON will do to all the preparation to normalcy worldwide, my guess is that with proper protocol which includes vaccination, booster shots, things may proceed on its own pace.

Markets are deeply oversold as of Friday's close.

Opportunistic buying should be done with exposure to all sectors.

Technology stocks behaved much better overall especially @ home stocks came to life again.

I do not believe that we are going back to lockdown days with new variant.

From Monday, I expect pragmatic and workable solution to deal with OMICRON will be implemented.

Most protocol is in place with added screening from impacted countries to follow.

Good luck with your own analysis of OMICRON variant.

BLOG does NOT give buy or sell.

Saleem


5 comments:

stocktrader_1996 said...

Hi Saleem,

Last week: -2.43% (YTD: +46.15%)
Notable Leaders: BMEA, MNDY UPST IONQ (from Monday purchase), CHK
Notable Laggards: ZENV ESTC KRUS PLAY ZIP

In a pullback week for the market, initially with rising rates but ending with variant fears, the portfolio performed in-line or better, which is encouraging considering the high beta composition. Utilizing the cash early in the week for beaten up tech purchases turned out to work well. I think weekend information tells us that the omicron variant might turn out to be a manageable threat, but may put us in a situation where the economy and the Fed might be a bit slower, so the market may re-rally once again. Stay the course in good stock and charts for year end.

Holdings: ZIP RBLX CHK AA FSLR UPST AGCO SNAP ESTC AXON PINS PLAY MNDY KRUS BMEA GMBL ZENV, cash 0%

Stocktrader

stocktrader_1996 said...

Hi Saleem,

Sold MNDY @ 359.07 to take profits ahead of the lockup expiration early in December

Stocktrader

Stocks100 said...


Hi Stocktrader,

Last week Down 2.21%

YTD UP 1.59%

Good luck with next pick$$$$$

Saleem

stocktrader_1996 said...

Hi Saleem,

Added to KRUS @ 63.59
Added to PLAY @ 33.16
Added to BMEA @ 12.05
Added to PINS @ 40.90

Utilized my cash to add to underweight names with some kind of positive chart/catalyst situation.

Stocktrader

Stocks100 said...


Hi Stocktrader,

Good luck with all additional weighting!

Saleem