US stock market came roaring back on slightly better than expected CPI....
YES...US stock market was oversold, was looking for an excuse to bounce
BUT more significant could be development in Russia Ukraine war
Also China is relaxing zero tolerance for COVID-19 cases
SO...we have TRIFECTA of most positive news in a minimum 1 year timespan
Celebration by market for 2 days is more than justified
NOW..I am looking @ internals of this market which is highlighting again, what is working and what IS lagging....
Here is the current read of RSI :
JETS 70.59
XLF 68.68
DOW 68.03
SOX 67.64
XLE 64.95
TAN 63.10
IWM 62.17
S&P 500 61.96
Nasdaq 58.41
Very very interesting read on the state of this TAPE, never ever thought that I will live to see that after 2 strong days of rally, Nasdaq will be the showing relative weakness and weakest in my universe, not only that world famous S&P 500 from which everything is compare or measured with or against for relative performance will be second from bottom.
How the investing world has changed needs to be noticed and noted down....
BUT Wall Street has many yard stick to be measured against / with, our world famous 50 DMA & 200 DMA, there again an interesting set of strength can be seen.....
Strongest is XLE energy stocks
Weakest is Nasdaq, SOX, JETS
Next set of strength lies in DOW, Russell 2000, TAN & XLF
Message of the market still IS.....Nasdaq has passed its prime and showing in weakest performers list TWICE in key measures....
BUT DOG of current market NASDAQ may surprise everyone in next 12 months......proves market is NOT an exact science....
SO...when you look @ your portfolio, please factor some of the current strength & weakness.
Market has slumped for over 2 years for technology stocks and almost 2 years for all other sectors....
TIME to be HOPEFUL AGAIN for next 12 months.....
TIME WILL TELL....
Good luck with your own analysis and comfort level.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hi Stocktrader,
Last week UP 10.37%
YTD Down 4.28%
Saleem
Hi Saleem,
Last week: +5.30% (YTD: -24.13%)
Notable Leaders: SNAP GTLB UPWK (all >+20%)
Notable Laggards: BMEA LYFT
In a huge week where the major averages were up 5% or more, the portfolio performed adequately but some disappointments remained. Individual stocks are still making some sudden unexpected down moves and I have been hesitant to make changes in some cases, resulting in further losses. While I am still outperforming the NASDAQ on the year, the last month has been much tougher. I put on some TZA for now to provide protection in case there's retracement and digestion of recent gains, but am encouraged that we may have seen the worst of the market as inflation *finally* starts to roll over.
Holdings: SOXS LYFT SNAP SYM PLAY GTLB FLL UPWK BMEA ZENV, cash 0%
Stocktrader
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