US stock market has been under severe selling pressure since 3rd week of July....
US Stock Indices went below 50 DMA
Russell 2000 went below 200 DMA
All of the above is a reflection of intense selling and liquidation of equities
Money market funds are competing with US equities for a guaranteed 5% return
Most of the high fliers AAPL TSLA META DDOG FSLR SHOP AI PLTR all were trashed into bear market losses or close to It.....
Most of the bad news have been discounted...
Even high flying 10 year rate has tipped lower to 4.25%, indicating overbought condition....
All of the above should result in some kind of stabilization in equities
Based on RSI.......
XLE was the-best performing with 62.27 RSI
Nasdaq was the-most oversold with 32.68 RSI
IWM was the 2nd worst with 34.54 RSI
YES ...It IS much safer to buy many bargains which I have named above....
Risk / Reward is pretty good now favoring bullish posture.
US stock market always goes in extreme, either more bullish than anybody predicted or more bearish than most pundits.....
It IS very important to be ready for both extreme always....
Sometimes " relative value " may trigger a change in strategy which is always a sign of good trader....
NOW is the time to think & act bullish....
Making money is NEVER easy in stock market but having an open strategy works...
Good luck with your own take on where we are in US markets...
BLOG does NOT give buy or sell.
Saleem
6 comments:
Hi Saleem,
Last week: +0.42% (YTD: +87.46%)
Portfolio Leaders: TZA JETD PINS ZENV
Portfolio Laggards: BMEA AGCO HIMS TYGO
In another pullback week for the markets on rate fears, the portfolio managed a small gain thanks mostly to the short positions. This week's big NVDA report might set the tone for the rest of the year in technology, so it's going to be a big one! I think generally rates are at a fairly fair level here, with the tight labor market creating unabating wage pressures that foster a "higher for longer" interest rate scenario. Last week was the market's reaction to the discount rate effect, but I think there still might be a liquidity re-adjustment to come, and so I remain hedged for now. I believe we are still in an relatively unknown market and economic environment for most investors, having not seen this in decades, so the old playbook shouldn't work - and that will force further adjustments to positioning.
Holdings: TZA(x3) IONQ PINS PLAY AGCO BMEA TYGO HIMS ZENV(0.25x), cash 0%
Stocktrader
Hi Stocktrader,
Last week Down 8.95%
YTD UP 92.88%
Saleem
Hi Stocktrader,
Sold CAVA @ $42.25
Bought M @ $14.80....reports before open....
Saleem
Hi Saleem,
Good luck with M - poised for a big day if report is good!
Stocktrader
Hi Saleem,
Sold IONQ @ 14.41 to take quick profits
A low volume oversold rally concerns me here with interest rates still moving higher.
Stocktrader
Hi Stocktrader,
Quick profit is a good profit always....
Saleem
Post a Comment