US stock market on Friday took a beating and closed near low of the day.
For the most part it was expiry of weekly options
Secondly, we were overbought, have been going UP & UP for last 5 weeks
Third and may be the most important yields were rising lately
SO we have pulled back hard on Friday, most stocks took a beating in most sectors
Weakness in stocks is an opportunity to make some changes based on current market preferences or weakness, Crypto currencies are taking into chin these days.
When we are down hard, I look into making some switches in my portfolio to reflect weakness in Crypto currencies
Market will go UP and markets will go down based on fundamental reasons / technical reasons / sentiment or short term reason like option expiry.
I see US stock market in much better position to go higher than most markets which has more challenges.
US dollar strength has taken a huge toll on world currencies and is impacting balance of trade creating huge deficits
US inflation will slope downwards due to higher dollar
Gasoline is coming down hard which will reduce inflation in USA
SO, take a moment and see how you can reposition your portfolio to take advantage of current weakness.
Good luck with your own interpretation of current market condition and your own comfort level.
BLOG does NOT give buy or sell.
Saleem
5 comments:
Hi Saleem,
Just got back from a mini-vacation starting Thursday - good luck with the add!
Last week: -8.30% (YTD: -6.18%)
Notable Leaders: IONQ
Notable Laggards: ZENV MTTR GTLB SYM COUP
It was a brutal week in the market as weeks of chugging higher hit the brakes suddenly. My portfolio was surprisingly vulnerable as I thought I'd selected companies which saw good earnings momentum, but I guess everything needs a break some time. I am unconcerned with the direction eventually as the major impetus for the Fed raising rates, inflation, has cooled substantial from prior levels and should continue to soften. Making small adjustments based on opportunity is the game plan for now.
Holdings: PLAY SNAP GTLB UPWK COUP SYM LYFT FLL IONQ BMEA MTTR ZENV, cash 0%
Stocktrader
Hi Stocktrader,
Last week Down 9.92%
YTD Down 4.46%
Saleem
Hi Stocktrader,
Added 33% SOL @ $6.17
Saleem
Hi Saleem,
Good luck with more SOL! Seems like many stocks are on sale right now...
Stocktrader
Hi Stocktrader,
Good day to make changes in portfolio.
Saleem
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