US stock market has finally succumbed to multiple challenges.
High inflation which keeps turning UP when expectations are for tamer number.
High High Interest rates seems no sign of abating YET
Earliest prediction of lower Interest rates has been pushed out to the end of Q4, 2023
High wages are finally coming down as Walmart is able to offer lower wages
Economy is readjusting to back to FUTURE ( Back to office )
META & TSLA are FIRM on returning to office for paycheck....what a concept....
BUT BUT many are rethinking their lifestyle and have already made many adjustments to cut their living expenses....everything is ONLINE / UBER
FINALLY there may be an adjustment for workforce....maybe 3 day office and 2 day work from home...
BUT there is AI which IS reducing need for physical workforce and making huge gains in productivity...
Most companies have OR are in the process of incorporating AI in everything, now that SIRI, Alexa & Google Assistant have taken over our lives on & off the road.....
After considering all that, there is WEAKNESS in US economy which may take time to rejig AI , Inflation & High Interest rates....
RSI is painting a very weak picture as to the strength of each sector in US stock market, MOST of the sector are showing RSI of 40 or below....
Strongest RSI is in XLE / Energy @ 72.05
Weakest is Solar / TAN with 30.89 RSI
RUSSELL 2000 RSI @ 40.20 and may be going down BELOW 200 DMA.....
Most of the sectors are above 200 DMA except Solar / TAN which is the only sector below 50 DMA & 200 DMA....
To sum it up, lot of caution is warranted, ENSURE that you are very comfortable with your stocks and have done your near term projections in a very REALISTIC manner..
All boats are not being lifted anymore.....
Overtrading does NOT solve near term issues....
Have very HIGH CONVICTION stocks....
Good luck with your own take & comfort level.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hi Stocktrader,
Last week Down 7.63%
YTD UP 104.90%
Saleem
Hi Saleem,
Sorry, it has been a busy day!
Last week: -4.27% (YTD: +91.50%)
Notable Leaders: IONQ ZENV
Notable Laggards: PLAY LYFT, most everything else
In a big pullback week for the indices, the portfolio did the same. Rates fears again resurfaced as economic data was surprisingly strong, and then technology fears from China hit the market with a 1-2 punch. As we grind through once of the seasonally weak months, I continue to think about year-end positioning, as well as some potential laggards that may have positive catalysts. I think the market overall is doing a good job of churning as it finds comfort levels with rates, and winners should really separate themselves shortly.
Holdings: IONQ PINS NVDA AGCO LYFT TOST BMEA PLAY HIMS TYGO ZENV, cash 0%
Stocktrader
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