US stock market is confusing many " news driven " traders....
News has been terrible in past few days....
FTX collapse......and market gave a big yawn
Fed Bullard trumpeting 5% to 7% interest rates....and US stock market said...IGNORE his predictions...YES market closed higher.....
SO message of the market IS
Trade on fundamentals of each stock....
Stock market is a discounting mechanism....may have discounted more than what traders are ready for...
US stock market has been in a downward spiral for last 23 months based on averages.....for Technology stocks....it is more like 30 months since it peaked....
In the end TAPE matters NOT NEWS of the hour
SO what is behaving better than in this " news driven market "
In my universe 3 sectors are looking very good based on moving averages
IF you can believe it....DOW is a runaway success...above both 50 & 200 DMA
TAN / Solar is also above 50 & 200 DMA...hated by many, but keeps outperforming
XLE...Yes Energy stocks are also above 50 & 200 DMA....many predicting It Is going lower
Interestingly in my universe of 8 sectors all are above 50 DMA....a rarity ....
Nasdaq & IWM / Russell 2000 are weakest as of Friday's close....for those who want to know Nasdaq RSI is 54.05 IWM Is 55.59
As you can see with my analysis most sectors are behaving much better, thus It Is prudent to buy stocks in each sector who are the-best of breed...
Like it or NOT....market wants to go higher irrespective of Fed's aggressive policy, may be just may be, we may be looking @ last of the aggressive rate hikes by worlds Central Banks...my theory of course...
Good luck with your own analysis and your comfort level, Fed may say Pain BUT it could be the start of pleasure for Investors / traders .....
BLOG does NOT give buy or sell.
Saleem
4 comments:
Hi Stocktrader,
Last week Down 8.28%
YTD Down 12.56%
Saleem
Hi Stocktrader,
Added 15% SOL @ $4.84
Saleem
Hi Saleem,
Last week: -5.20% (YTD: -28.07%)
Notable Leaders: SOXS TZA
Notable Laggards: GTLB LYFT SNAP SYM BMEA ZENV
It was another disappointing week as the portfolio underperformed the averages significantly. The market seems to be pricing in a corporate spending slowdown which is hurting growth stocks even as rates are well off their peak and inflation is rolling over. I think some of the issue is year-end portfolio trimming and showcasing, but it is a delicate dance to figure out when the institutional year-end selling has abated. At this point late in November, I'll look to add back more growth exposure as we look to 2023 winners.
Holdings: TZA SOXS SYM PLAY SNAP LYFT GTLB BMEA ZENV, cash 0%
Stocktrader
Hi Saleem,
Good luck with more SOL!
Stocktrader
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