IF you observe US stock market closely, there is a logic involved in its " irrational behavior "
US stock market goes through pricing any new trend to fully discounting any real issue..
IF we follow closely what IS IN
& also
What is OUT
We can benefit from many profitable trade
We all have observed how different sectors / stocks are in vogue and they keep going UP until its over..
We also have observed that many stocks are left dead either for no reason @ all or for good reason...It IS our job to figure out what IS happening
Remember when NVDA kept going UP & UP....BUT then pulled back 50%.....along with many technology stocks UNTIL their shocking Q1 AI based result.....
TSLA has also suffered repeatedly from BOOM to BUST cycle....
BUT IF you understand those stocks well, they have all the qualities of not only keeping the lead BUT they keep reinventing.....
Above are just 2 examples to make my point...
In current market scenario, we have digested lot of unusual negative trendline of " hyper inflation " & 3 decade old high high interest rates.....
BUT US stock market has valiantly reinvented itself despite those 2 ominous issues to reposition for future Sales growth & future EPS growth...
Try to catch those winning companies in your areas of focus / expertise
With winning stocks RSI is NOT much of a help as they stay in overbought zone for months.....& you may sell too early....
Wall Street has NO RULES for going UP or DOWN.....you have to keep an eye for changing trendlines....
As they say " always follow the money "
Both in exiting & entry....
Please keep in mind " seasonality & rotation "
Good luck with your own home work & comfort level.
BLOG does NOT give buy or sell.
Saleem
4 comments:
Hi Saleem,
Last week: +4.93% (YTD: +100.03%)
Notable Leaders: LYFT IONQ ZENV AGCO
Notable Laggards: TYGO
It was a stellar week for the markets, and with the portfolio unhedged, it was able to shine. Broad strength among many sectors, with small caps leading the way, likely sets the stage for further gains from here as many of the known fears have been fully discounted. Major trends in the economy like business and consumer spending are propelling us forward despite the massive interest rate hikes we've seen from the Fed in the past 12 months. As we look forward to a moderation in all trends, it should provide that stable backdrop needed for a year-end grinding bull rally. I hope I am currently positioned well, but as relative strength becomes extremely important this late in the year, I will trim and adjust positions as necessary to maximize portfolio returns.
Holdings: NVDA AGCO IONQ PINS LYFT PLAY TOST BMEA HIMS TYGO ZENV(0.25x), cash 0%
Stocktrader
Hi Stocktrader,
Last week UP 18.37%
YTD UP 112.53%
Saleem
Hi Saleem,
Trimmed a little IONQ @ 18.43 for more TYGO @ 9.22
Stocktrader
Hi Stocktrader,
Good move, taking profitable $$ from IONQ & averaged down TYGO...
Saleem
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