Sunday, August 7, 2022

US stock market may surprise bears......

 US stock market not only is showing resilience BUT it is all set to surprise bears who are so entrenched in their belief.

Last week and particularly Friday with job shocker, market maintained its own rhythm and DOW showed money...

Always pay attention to market action on worst days, IF its more than OK then do not ignore it.

Dr Marty Zweig famous line " do not fight the TAPE " speaking loud and clear these days...

Biggest outperformer is Russell 2000 which is critical for a sustained rally, IWM is sporting highest RSI in my universe @ 68.98

TAN or solar stocks are showing biggest UP moves and strength, TAN is almost ready to make "first Golden Cross " very shortly...first real technical strength on any board....RSI @ 66.07

XLE has crashed but some die hard are not giving up, some were very late to join on the slump, RSI reading is lowest in my universe @ 47.91

Nasdaq or technology stocks are showing second highest RSI reading @ 66.71.

Technology has been showing strength and sign of turning higher after testing series of support. It is a tough area to navigate as most familiar names are not leading charge, some of them like META just found support.

Bottom line is create a new portfolio which not only moves with market but is actually "outperforming "

Good luck with your own thesis and comfort level.

BLOG does NOT give buy or sell.

Saleem

5 comments:

stocktrader_1996 said...

Hi Param,

It's interesting you bring up PSNL because I was just looking at it last week as well! They are nearly trading at cash value, so the street is skeptical they can make money any time soon. I thought the business momentum was solid, and it seems intuitive their product should be increasingly used. They are still suffering from the huge decrease in revenue from the VA, but it appears they have mostly worked through that issue as revenue from "other customers" was up 74% YoY. If I saw a secondary offering, I might step in, but otherwise still remains too speculative for me given other beaten down more easily profitable stocks.

Hope this helps some - good to hear from you again!!

Stocktrader

stocktrader_1996 said...

Hi Saleem,

Last week: +12.01% (YTD: -0.70%)
Notable Leaders: LYFT U IONQ COUP GTLB BMEA UPWK
Notable Laggards: ZENV

It was a spectacular week, but one for which I have long been waiting. Valuations of so many good growth companies got so depressed that it merely took the notion of good news to spark a huge rally. Inflation expectations have finally moderated some, and in conjunction, expectations for an easier Fed abound, despite what they still say themselves. I am still trying to be nimble, and pay attention to specific earnings reports, but the risk is selling out too early if the market runs for months climbing the wall of worry. I suspect we'll still have some setbacks along the way, so I think I'll try to have a little cash on hand for opportunities. It remains key to look for "float-ups" into year end here.

Holdings: LYFT GTLB UPWK COUP SYM PLAY SEAS SNAP IONQ BMEA ZENV, cash 8.6%

Stocktrader

stocktrader_1996 said...

Hi Saleem,

Sold SEAS @ 54.26 to take profits

Stocktrader

psrajpal said...

Thank you Stocktrader for your comments on PSNL.

Stocks100 said...


Hi Stocktrader,

Last week UP 6.92%

YTD UP 1.95%

Great week of outperformance for you NICE $$$$

Saleem