US stock market is having serious second thought about Fed impact & OMICRON resurgence
6 out of 9 sectors are below 50 DMA...technically market is breaking down
Russell 2000 is below 50 & 200 DMA... technical breakdown has occurred
RSI is also telling a very weak technical set up
Most indices / index / ETF are in 40 RSI area
TAN solar stocks is the weakest with RSI of 32.84
S&P 500 is barely above 50 DMA which is among the strongest IF you can call that strong
SO...technical picture has worsened
Question of the week is....what to do NOW
Have we discounted everything about Fed & OMICRON? most do not know the answer yet thus uncertainty persists.
All we are doing is playing the odds, as to how we see the market near term
Nasdaq has given a clear cut message despite good recovery by Friday's close, message is " all is not well in tech land "
Major shift in allocation has occurred in technology ETF, only few diehard like Cathy Wood insists she is the only one who can see present & future?
Financials are also weakening
Pay later stocks are in trouble
Home Gym idea is in ICU
OMICRON looks like will infect much faster but is not fatal based on current stat
Please read carefully " message of the market " Peter Lynch famous mantra, do not ignore warning sign
Try to be in this market as best gains of the year is in only few trading days..as Peter Lynch repeated hundred of time...do not time the market it is futile and you lose best days which is few and far in between
Good luck with your own version of Peter Lynch or read his books " ONE UP ON WALL STREET "
BLOG does NOT give buy or sell.
Saleem
3 comments:
Hi Saleem,
Last week: -6.89% (YTD: +28.09%)
Notable Leaders: AA CHGG
Notable Laggards: BMEA RBLX UPST GMBL ZIP ZENV HUBS
It was another difficult week for the market and my stocks specifically as the Fed and omicron fears teamed up to deal a 1-2 punch to the market. This period feels so much like December 2018 when Powell turned extremely hawkish suddenly even as companies started to indicate a weakening of economy conditions, precipitating a major decline in the indices. I am starting to wonder if Powell really does know what he's doing as his sudden pivot to non-transitory inflation and a faster taper happened just as omicron was coming on the scene. At this point with many growth stocks down 50%, I think patience is required and I suspect the selling must abate soon as seasonal effects take over.
Holdings: PINS ZIP PHM UPST AGCO CHGG SNAP PLAY ELY CXM USER ZENV GMBL BMEA, cash 0%
Stocktrader
Hi Saleem,
Sold CHGG @ 29.41 to take quick profits
Bought LYFT @ 37.05
I think the fear will abate and the re-opening trades can work here.
Stocktrader
Hi Stocktrader,
Last week Down 2.98%
YTD UP .57%
Saleem
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