Finally, US stock market is ready to stage a deeply oversold bounce.
There is a good chance, this bounce may last for several days.
This is a great chance to get rid of vulnerable stocks.
This is also a very good chance to rethink about your investment philosophy.
Market character has changed......
Bear market has taken over...
Russell 2000 was the first index to hit 20% bear market level.
Nasdaq is extremely vulnerable to hit bear market level....
This TAPE is looking very shaky and can succumb to any selling pressure very quickly.
Most participants are still not ready to accept that bear market is a real possibility, this makes for a rude awakening when it is too late.
Bear market is a fact of life for stock market...it happens quite routinely, sometimes in quick succession sometimes after few years...
TAPE is giving all indication that this bear market may last longer than previous short trading bouts.
It is well advised to prepare for a worst scenario NOT a passing bear market...
This week, I may further reduce my exposure to only 25%.....
It will be better to see impact of higher interest rates than be in a predictive / optimistic mode
From all indication interest rate hike will start in March and may last until October, which may clear up bearish action by then....
October has found many lows / support in many bear market, you may be early but better than be trapped from hereon...
From all indications, Energy Financials and reopen sectors like Airlines, Cruise lines, Hotels Casinos all are looking better positioned than technology......
Energy is most vulnerable to immediate pullback to deal with euphoria.....so a wait and see in Energy is desirable....
YES...some select Technology and EV can give good return....
Make sure that no matter what you buy, ensure price is right.....
Bear market are extremely painful and equity can evaporate in no time....so be mindful & watchful.
Good luck with your thesis about market and comfort level.
BLOG does NOT give buy or sell.
Saleem
4 comments:
Hi Saleem,
Last week: -1.58% (YTD: -22.49%)
Notable Leaders: ZENV GMBL ZIP PLAY
Notable Laggards: USER PINS VERI BMEA
In a week where the market appears to have done some solid bottoming work, the portfolio weakened further as some stocks struggled. Investors are quickly digesting the prospect of multiple rate hikes this year, and that process might be completed for now with some stocks down 50%+ from highs, being careful to recognize that many stocks got inflated too far in the first place. I think many investors are thinking in extremes currently: that inflation will ramp unabated all year, that growth will be massive as the economy re-opens, that the Fed will just raise repeatedly from now on, that stock prices have to fall continually - none of these items will likely be as one-sided as many profess. I think inflation and growth may be moderate, and that leaves the door open for moderacy in rate hikes and price action. I look forward to many of my companies reporting soon.
Holdings: PINS SNAP PLAY ZIP VERI UPST ENPH CXM ZENV USER BMEA GMBL, cash 0%
Stocktrader
Hi Stocktrader,
Last week Down 1.24%
YTD Down 1.48%
Saleem
Hi Stocktrader,
Sold 50% HST @ $17.30
Saleem
Hi Saleem,
Good luck with reduced exposure and/or next pick!
Stocktrader
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