US stock market was going through another ringer for possibility of US government shutdown....BUT IT IS averted for another 45 days, giving more time for " non-speeches & partisanship "
US stock market should rally hard on this news, expect a high open and then see how far this rally can go...
YES US stock market is " deeply oversold "
Any reprieve from shutdown IS a welcome news as everyone had given UP on politicians will to resolve this ongoing shutdown circus.....
YES...inflation is coming down also...which will help propel this rally further...
YES....10 year yield also tapering down which has helped calm some nerve....
All of the above should create a powerful liftoff in US stock market...
Based on my RSI read out......
GOLD is the biggest bargain in a long time...with RSI of 24.85.....a deeply washed out condition which may reverse in hurry....SO any form of gold exposure like ETF or stocks can work
DOW is the weakest among major Indices with RSI read of 30.76.....
XLE is the strongest sector with RSI of 51.99.....may need MORE REST & DIGESTION
SOX is the strongest with a read of 44.84...still beaten down badly.....
Nasdaq our favorite is 38.14.....bargain galore
Based on all of the above, take a bullish posture in a well diversified portfolio...
Seldom we get RSI this low unless we are battling major uncertainty.....
We are well on our way to reap reward for showing patience & conviction...
Good luck with your own read of economy & politics....
BLOG does NOT give buy or sell.
Saleem
3 comments:
Hi Stocktrader,
Last week UP 4.60%
YTD UP 91.93%
Saleem
Hi Saleem,
It has been an amazing year for you as you've navigated the ups and downs nearly to perfection. With just one quarter to go, this will go down as a banner year - congrats in advance! :)
Last week: +2.37% (YTD: +76.56%)
Portfolio Leaders: IONQ LYFT NVDA PLAY
Portfolio Laggards: BMEA TYGO
The portfolio performed well last week despite mixed averages. The Nasdaq flat on the week in the face of the more rising rates may indicate the selling is exhausted. Now, any positive catalyst should be a good spark to the upside. In that case, I will use the strength to sell some of my laggards and have opportunistic cash for late-year winners. Eyes turn to the jobs report and the start of earnings season - how the market reacts to each is in question, but ultimately it is earnings that drive individual stocks, and as rates remain high, the individual stories should matter even more.
Holdings: NVDA AGCO PLAY TYGO LYFT IONQ HIMS TOST U BMEA ZENV(0.25x), cash 0%
Stocktrader
Hi Stocktrader,
Thanks for your feedback re my results, there is still 3 months left, hopefully results should stay in a desirable range for both of us....
Saleem
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