US stock market is on a well defined uptrend.
All major Index / Indices are above 50 DMA & 200 DMA, a classic definition of a technically strong market.
Nasdaq which was much maligned by most pundits has given the-best performance in last 4 weeks.
Nasdaq is showing highest strength among major Indices with an RSI of 68.37
US stock market is showing so much strength with high volume that an aggressive allocation is highly desirable.
Very seldom we see high volume positive action near lows.
Most sectors are above 64 RSI in my universe, only TAN is below @ 54.42
Most participants are extremely cautious near lows as they are still afraid of another downtrend.
YES market may pull back BUT it will be another chance to add strong stocks.
Please do not go bargain hunting, that is a short cut to underperformance.
Wednesday @ 2 PM Fed may finally announce a PAUSE in hikes, a strategy already announced by Canada's Central Bank.
IF that happens, expect a very strong run to higher level.
SO...do your homework and see IF you have strong stocks in your portfolio.
Some speculative stock is OK but 80% should be in stocks showing strength.
Good luck with your own analysis and comfort level.
BLOG does NOT give buy or sell.
Saleem
6 comments:
Hi Stocktrader,
Bought LCID @ $13.00 in premarket
Saleem
Hi Saleem,
Good luck with LCID - the death spiral many of these stocks endured for a year+ may have finally ended as the Fed nears their pause point. Even a stabilization of rates will help many of these long term growth stories.
Stocktrader
Hi Saleem,
Last week: +7.66% (YTD: +26.41%)
Portfolio Leaders: SUMO GTLB BMBL DDOG
Portfolio Laggards: BMEA ZENV SYM
The takeover reporting in SUMO really supercharged the portfolio's gains this week but the strong tone in established growth stocks was a market theme. I am worried that once the short squeeze is over in these stocks that we will have to endure a long digestion period after gains of this magnitude. This will actually be an opportunistic time as individual stocks will make runs and smart selection should produce superior gains. It is amazing to me that it only took a month to unwind a great portion of the losses from all of last year - it pays to always be involved...
Holdings: BMBL SYM DDOG PINS GTLB LYFT PLAY IONQ BMEA SI ZENV, cash 0%
Stocktrader
Hi Stocktrader,
Last week UP 16.50%
YTD UP 39.43%
Saleem
Hi Saleem,
Incredible gain this year so far WOW!!
It probably rivals the top years of the past 2 decades in just a month (besides 2020).
Stocktrader
Hi Stocktrader,
Thanks for your complimentary note.
Do NOT recall first 4 weeks of strong gains in any year...wk2 & wk4 almost equal in strong gains....
Hoping this year may be different than recent past.....
Saleem
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