Sunday, December 12, 2021

US stock market set to rally to new highs....

 US stock market is all set to rally to series of new all time highs....

US stock market has discounted many things which was troubling this TAPE and they are :

Fed policy of faster tapering

Delta variant is facing more and more vaccinated population resulting in fewer deaths.

OMICRON is not multiplying as feared

Shipping bottleneck is easing up

Inflation is @ peak as of Friday's CPI report

The above is a major break for market

Fed tapering schedule on Wednesday will cause a major rally as it will not be as feared, much more gradual increase than so called doubling of tapering.

US stock market is looking very undervalued despite new all time closing high in S&P 500....

Here is the RSI number to support my undervalued conclusion :

SOX           59.28

S&P 500    58.20

DOW         57.77

XLE          53.81

Nasdaq     51.55

JETS        43.84

IWM         42.07

XLF          39.05

TAN          37.80


This is the first time that I am observing not a single indices / index / sector is even @ 60 RSI..an extremely rare phenomenon despite S&P 500 hit a new all time closing high.....

Majority of the RSI are showing a read which confirms that this market has a long way to go up.

Please do your own homework and try to pick winning stocks in your universe.

We should be going much higher from here based on RSI

Look @ long term sustained gain in your selection of stocks.

Restart of economy stocks should gain momentum going forward as evidence are piling up that economic activity is picking up steam......

Technology stocks which are linked with Metaverse should gain momentum also...

5G related stocks also are a beneficiary going forward

Cloud storage related should do well

All in all from Energy, Airlines, Casinos, Hotels are all lined up for brighter days ahead.

Good luck with your own comfort level & take of where we are in the stock market cycle

BLOG does NOT give buy or sell.

Saleem

4 comments:

stocktrader_1996 said...

Hi Saleem,

Last week: +4.48% (YTD: +37.57%)
Notable Leaders: PLAY MNDY AA GMBL SNAP PHM
Notable Laggards: UPST BMEA HUBS

The rebound week for the markets helped the portfolio gain back some lost ground, but I still didn't see the sharp bounces for some growth stocks as Fed tightening fears and margin calls forced more selling. As we look to the rest of the year, I think the worst of the selling is over and we'll likely start that float up period. I hope I have the right mix of stocks, and will definitely be looking at some very beaten down ones late in December for fresh capital.

Holdings: ZIP UPST PINS RBLX SNAP AA PHM PLAY AGCO HUBS CXM ZENV GMBL BMEA, cash 0%

Stocktrader

Stocks100 said...


Hi Stocktrader,

Last week UP 6.98%

YTD UP 3.55%

Saleem

stocktrader_1996 said...

Hi Saleem,

Sold SNAP @ 48.28 on lack of catalysts

Bought USER @ 9.10 on very positive initiations and runway for growth

Added to HUBS @ 725.61

Stocktrader

Stocks100 said...


Hi Stocktrader,

Good luck with USER & more HUBS...

Saleem