Sunday, October 8, 2023

US Stock market looking beyond higher rates....

 US stock market FINALLY discounted current mantra of higher interest rates longer...

Jobs report slump gave many to cover short position

All Indices went to their major support which varied to as far back as May 2022 for Russell 2000..a 16 month slip sliding

DOW found support @ October 2022 level ..full 12 months round trip to nowhere...

S&P 500 & SOX found support @ May 2023 level...struggle of 120 days ...

Nasdaq found support @ June 2023 level....90 days of building base.....

The above stat tells the story of how Wall Street treats different sectors @ different times...some NOT BAD & some REALLY WEAK....

Based on RSI...weakest is RUSSELL 2000 @ 35.27

DOW is 2nd weakest @ RSI of 37.21

Strongest IS Nasdaq @ 49.52 RSI....still a BARGAIN....

Nasdaq has been giving a clear message that Nasdaq is the best place to be in near term 

Long term on never knows who could topple every sector....could it be GOLD, Financials, CRYPTO....hard to tell.....

Some are very tempted with 5%+++ term deposit in Banks...

AI will continue to play a significant role in most sectors....so PLEASE have some or overweight exposure...

We are back to Q3 earnings report.....

Earnings these days are crap shoot for most companies based on high inflation, higher wages & high high Interest rates....

Investment / trading strategy needs to be with lot of home work, conviction & patience....have a long term vision of who the winners are....

Good luck with your own analysis & comfort level.

BLOG does NOT give buy or sell

Saleem

5 comments:

Stocks100 said...


Hi Stocktrader,

Last week Unchanged

YTD UP 91.93%

Saleem

Stocks100 said...


Hi Stocktrader,

Added 40% AI @ $23.90

Saleem

stocktrader_1996 said...

Hi Saleem,

Last week: -0.72% (YTD: +75.29%)
Portfolio Leaders: NVDA LYFT TYGO
Portfolio Laggards: BMEA TOST PLAY U

It was a sluggish week for the portfolio as high rates still took their toll on some of the smaller, less profitable companies. I waited too long to sell some underperformers, but finally made the moves to improve the overall relative strength of the portfolio, so hopefully that will benefit me into year-end. I look forward to earnings season where we can focus on individual company numbers instead of a Fed that is back to data-dependence, having done the majority of the heavy lifting already.

Holdings: LYFT(1.5x) NVDA AGCO PINS PLAY SNAP IONQ HIMS TYGO ZENV(0.25x), cash 0%

Stocktrader

stocktrader_1996 said...

Hi Saleem,

Good luck with more AI!

TYGO pre-announced another massive revenue shortfall due to channel inventory. I should have done a better job in managing this position specifically.

Stocktrader

Stocks100 said...


Hi Stocktrader,

Sorry to hear about TYGO shortfall, I am sure you will make the right decision.

Saleem