US stock market is facing two uphill battle for now, OMICRON & new faster tapering from Fed.
Both are very unsettling as they both have created major uncertainty
Fed faster tapering is removing liquidity from Wall Street which has supported this market since COVID-19
OMICRON impact is totally unknown @ the moment, there is no known vaccine except a booster dose of existing vaccine as a starting point
How fast OMICRON is spreading is also unknown, DELTA variant is still ramping UP in many countries including Canada, Britain & Russia
Knowing all of the above uncertainties, US & world stock markets are in an unknown territory in terms of economic impact.
US stock market has trashed many high flying stocks, resulting in ARKK being down a whopping 25% for the year way more than many indices.....
When I am looking @ RSI of many Indices and Index, there are many surprises......
Worst performing ETF is TAN which stands @ 31.60 in RSI rating, also below 50 & 200 DMA
Second worst is RUSELL 2000 @ 31.74
3rd worst is Nasdaq @ 38.53
Best performing index is SOX which is @ 56.00 RSI, it is also above 50 & 200 DMA
Only other Index which is above 50 & 200 DMA is XLB whose RSI stands @ 43.35
XLE energy index is sporting a healthy RSI of 44.99...this is 2nd best performing in RSI rating
What can we analyze with the above RSI & 50 plus 200 DMA......????
SOX is giving signal of extreme strength under very difficult environment, we should have some exposure there, look @ NXPI as to how close it is to its all time high.....
Energy ETF XLE through many companies not only showing relative strength but was showing green in many portfolio on Friday.....
YES it is extremely tough for many traders, ETF & institutions, but it may be discounting most of the issues @ current level.
DOW staged an impressive V bottom on Friday which must be noted....
Nasdaq is the only index which is still scraping the bottom of its range...
Tough it is... but pay attention to the direction in Fundamental picture of every stocks, it matters NOW.
Rethink your portfolio, when tides are against you, it does not make any difference where the stock was, it is where its heading, should have a good handle on the direction of each stock going forward.
Good luck with your own analysis and comfort level.
BLOG does NOT give buy or sell.
Saleem
5 comments:
Hi Saleem,
Last week: -9.91% (YTD: +31.66%)
Notable Leaders: PHM
Notable Laggards: everything else
It was one of the most brutal weeks I can remember. Almost nothing was spared from the selling as Fed faster tapering and the omicron variant concerns took center stage. I used the extreme weakness in growth stocks to add more exposure, but it remains to be seen whether that was a wise idea. It does feel like short term the selling has been overdone, so I'm hoping the stocks with continuing positive growth prospects for next year see some inflows.
Holdings: UPST RBLX ZIP SNAP ESTC PHM AA PINS AGCO PLAY IONQ ZENV BMEA MNDY GMBL, cash 0%
Stocktrader
Hi Saleem,
Sold IONQ @ 18.63
The longest duration asset in my portfolio - it's not worth the risk right now.
Stocktrader
Hi Stocktrader,
Last week Down 5.02%
YTD Down 3.43%
Saleem
Hi Saleem,
Added small to ZENV @ 8.47
Added to PINS @ 36.54
Added to UPST @ 171.03
Added to ZIP @ 25.59
Getting more exposure in my comfort names and those with some amount of earnings power already with correlation to economic activity.
Stocktrader
Hi Stocktrader,
Good luck with more ZENV PINS UPST ZIP.....more is better$$$$
Saleem
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