US stock market is in full blown bear mode.
Most sectors are seeing high volume selling.
Higher fed funds and Central Banks rate are a given
High inflation is a given
Higher house prices are also given, as most investors have realized that houses are a better investment than even equities, house price gains in a year is higher than most salaries in a year.
Ukraine war rages on which is impacting food supplies and some key ingredients which is now embargoed, causing more and more inflation and higher input cost.
US stock market now is on the verge of taking out previous lows......
XLF / Financials are showing death cross.....means much more pain ahead.....
In my universe only 3 sectors are above 50 DMA & 200 DMA, XLB is one of them but showing an RSI of 42.06
2nd best is XLE which is above 50 DMA & 200 DMA, RSI is 47.44
Highest / best sector is JETS / Airlines which is above both 50 DMA & 200 DMA
JETS are sporting an RSI of 60.45.....
Airlines / Cruise lines are able to pass on higher fuel cost easily and are predicting better / profitable operations going forward....
Hotels / Gaming are also able to pass additional cost with higher room rates and are going to be profitable going forward.....
Many other sectors are challenged in terms of making money and are slow in dealing with supply chain issues....technology may be facing uneven Sales & EPS.....
It is important to see the writing on the wall with many company already have reported either challenging quarter or better quarter, so pay attention to northbound guidance....
It is all about forward guidance, so read quarterly reports closely about net net guidance...
We remain in a very difficult investing environment in stock market worldwide including USA...
Please do your fundamental analysis with a long term view in a diversified portfolio...
Good luck with your own interpretation of current challenges and comfort level.
BLOG does NOT give buy or sell.
Saleem
6 comments:
Hi Saleem,
Last week: -1.61% (YTD: -8.04%)
Notable Leaders: TZA ZENV PLAY
Notable Laggards: BMEA ENPH SNAP UPST LYFT CXM
In a tough reversal week for the markets, the portfolio somewhat outperformed thanks to the TZA hedging. It's strange that the market will suddenly run with ideas that been around for months already, but I've learned that sometimes it takes for everyone to think a move won't happen for it to suddenly do so. Ultimately, I think this pullback will produce healthy buying opportunities, but it is important to show patience in buying as the Fed remains committed to slowing the economy in an attempt to fend off long term inflationary forces.
Holdings: TZA(36%) PLAY ENPH LYFT SNAP ZENV LITE CXM UPST BMEA, cash 0%
Stocktrader
Hi Stocktrader,
Last week UP 2.70%
YTD UP 13.27%
Saleem
Hi Saleem,
I suspected you had another great week - congrats on this year so far!!
Stocktrader
Hi Stocktrader,
Thanks for your feedback, much appreciated!
Saleem
Hi Saleem,
Trimmed some TZA @ 38.00 to take profits
Bought PATH @ 18.63 on automation prospects
Stocktrader
Hi Stocktrader,
Very systematic and orderly profit taking in TZA...nice job$$$$
Good luck with PATH....
Saleem
Post a Comment