US stock market is in deep trouble.
Fed has given another " double dose of pain "
US stock market is below support in S&P 500 & Nasdaq
Most traders have lost hope for any relief
BUT like everything else in life, there is a ray of hope....
DOW is above 50 & 200 DMA
DOW has made a Golden Cross...a very bullish formation
TAN / Solar ETF is also above 50 & 200 DMA
XLE is also above 200 DMA but below 50 DMA
Can we get this Comatose market into life on Monday with the above positivity, very good chance of that.....
Worst performing sector is XLF much maligned Financial ETF@ 38.87 RSI....GS just announced layoff of thousands...just what Fed was hoping for....
2nd worst ETF is Russell 2000 with an RSI of 39.96
Based on RSI of 46.81 SOX is the-best performing ETF in my universe...
Based on all my rehash of numbers.....stay the course....we are going to get benefit of our CONVICTION / PATIENCE / DUE DILIGENCE
Big gains in US stock market is made when SENTIMENT is this NEGATIVE.....
PESSIMISM is rampant which IS a sure sign of REVERSAL coming soon on Wall & Broad St
Good luck with your own thesis and comfort level.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hi Saleem,
Last week: +0.56% (YTD: -27.98%)
Portfolio Leaders: BMEA GTLB SYM
Portfolio Laggards: IONQ SNAP
The market continues to get hit by the Fed's hawkish talk, but some individual names bucked the trend to move the portfolio higher on the week. I think we've definitely seen the peak in inflation, so it's only a matter of time before the numbers have rolled over enough (as we lap some of the worst Ukraine effects in Spring) and the Fed eventually pauses and maybe relaxes rates some. Our underlying economy is not hot enough to warrant 5% rates ultimately, so eventually this phase will pass. When the market decides to anticipate it more broadly I'm not sure, but positioning for the future has always been a good idea.
Holdings: SYM GTLB LYFT PLAY SNAP UPWK IONQ BMEA ZENV, cash 0%
Stocktrader
Hi Stocktrader,
Last week Down 3.43%
YTD Down 19.80%
Saleem
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