Sunday, July 24, 2022

US stock market in ascending pattern.....

 Despite Friday's weakness US stock market remains in uptrend.

Market is in an ascending patter.

Technically we are looking healthy in key indices like DOW, S & P 500,

Nasdaq & Russell 2000

This is a time to build portfolio for a better return 

YES...we will go through periodic pullbacks like Friday to react to gains or market related issues, but trend remains intact.

Wednesday another rate & policy decision will be announced, It  will be same pattern, hawkish & 75 basis hike...

Market may react in advance or after the news, but sooner or later everything will be baked in.

Russia & Ukraine agreed to export of grains, which IS a step in right direction, a huge positive for inflation fighting and world grains stock.

China is slowly coming out of its Covid-19 clampdown, which IS also positive for world trade & supplies plus commercial activities like shipping & Casinos.

YES...all of the issues related to COVID-19 and war impact is well known, adjustments being made worldwide directly or indirectly.

Fight for inflation control is in high gear worldwide, we may be looking @ last 2 major hikes in interest rates, then a pause...

A pause in hikes will be greeted with a huge sigh of relief and a long awaited rally.

Please factor some optimism in your calculation / risk in this market....

Good luck with your own analysis & conclusions.

BLOG does NOT give buy or sell.

Saleem

2 comments:

stocktrader_1996 said...

Hi Saleem,

Last week: +2.90% (YTD: -16.24%)
Notable Leaders: CROX COUP ENPH U PLAY IONQ
Notable Laggards: SNAP BMEA

In an up week for the averages, the portfolio performed nearly in-line despite the disaster of SNAP. The reset of commodity prices provides realistic expectations of reduced inflation in coming months which allows every investor to breathe. Finally being able to look at individual stories without a fear of crushing inflation or the Fed is a much-needed development. As usual, I'll look for earnings reports to signal which winners we might have in the second half of the year--there could be some big gainers ahead!

Holdings: ENPH CROX PLAY U COUP GTLB LYFT SNAP SYM BMEA IONQ ZENV, cash 0%

Stocktrader

Stocks100 said...


Hi Stocktrader,

Last week UP 3.93%

YTD Down 6.74%

Saleem