US stock market has only one known obstacle....It IS FED policy
NOISE is very loud for Wednesday's Fed policy statement
PPI has thrown FEAR in traders trading strategy and they are selling in FEAR
Like in life, nothing IS predictable all the time, when you are most sure, opposite happens
WHO KNOWS CPI may be below consensus......
IF CPI is below....party on Wall & Broad will start like magic
That is why...NEVER be out of market,,..,, more so near end of hyper tightening cycle where we are now
Despite PPI and possibly CPI numbers, FED may very well decide to PAUSE with minor hikes...they know US economy is teetering on serious recession....
SO stay calm and focus on your own portfolio instead of listening to " chart laden pundits "
Every chartist or technical guru is so right @ bottom, BUT we make money in positioning for future which may start next week.....
Looking @ overall market @ Friday's close, there is room for some optimism...a silver lining...DOW is only 250 points away from making a " golden cross "
Of all the sector XLF is ready to make a " golden cross " which is only 42 points away
XLB materials sector is strongest and is above 50 & 200 DMA
DOW is above 50 & 200 DMA
TAN is above 50 & 200 DMA
XLF is above 50 & 200 DMA
SO after being down for most of last week, internals are giving hope.....
Based on RSI reading XLB & SOX are 2 strongest sector with 55.04 & 54.49
DOW is 3rd strongest with an RSI read of 51.01
SO sit back and relax, we may be @ the end of this painful bear market.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hi Saleem,
Last week: -3.81% (YTD: -28.38%)
Notable Leaders: GTLB
Notable Laggards: PLAY SNAP IONQ UPWK BMEA ZENV
It was another tough week, common for this year, and the portfolio suffered. A surprisingly hot PPI offered no relief from the oppressive Fed stance, and I still contend the Fed is creating some of this problem as higher rates are increasing costs/prices in many cases. Some key metric for consumers, gas/food/clothing prices are way down from Ukraine-war peaks in late Spring, so I think by Spring we'll see much more relief on some of these inflation numbers - it remains a patience game until then but a Fed that pauses early next year should help. For now, the portfolio is mostly a collection of stocks beaten down too far, looking for that starting-year bounce, which can't come soon enough...
Holdings: GTLB SYM LYFT PLAY SNAP IONQ UPWK BMEA ZENV, cash 0%
Stocktrader
Hi Stocktrader,
Last week Down 8.10%
YTD Down 16.37%
Saleem
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