In last 11 trading days Nasdaq has been UP 9 days.....it was a straight 8 days of UP move....
All major Indices have crossed their resistance points.....no more struggling with 200 DMA or 50 DMA...all have been cleared in a hurry...
WHY all this optimism Wall & Broad street ?
First of all we are in the most bullish quarter Q4, where most of the money is made and year ending Sales & profitability is in FOCUS
October generally is the most bearish month...which has departed for at least 11 months...
Most of the issues of High high Interest rates / High Inflation has been discounted and has seen its peak...
Rally will get its high throttle when 1000 of shorts try to cover in panic and eventually go long....thus a sustained UP move and spirited gains in strong sectors....
Speaking of strong sectors....none other than technology will gain the most almost 3 to 1 compared to any other sector
XHB or homebuilders are looking strong
Crypto is coming back ....
Please put your focus on leaders NOT laggards.....
YES there will be periodic pullbacks to catch bull's breath...being tired is no good.....
Expect RSI to touch 80's and stay there....
IF you are still waiting to be aggressive ...do not delay.....stars are all lined UP
Expect this UPTREND to continue into 2024....
Interest rates will see downward adjustment in Q2 of 2024 which may fuel this rally further.
Nasdaq RSI @ 63.01 is in bargain basement territory based on where its heading into 80's
Leaders in Technology will remain the stocks to be IN
SO
Do your own home work & find your best ideas and execute....
Any delay may cost you in terms of gains.
Good luck with your own take about market & sectors.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hi Saleem,
Last week: -3.26% (YTD: +60.94%)
Portfolio Leaders: NVDA HIMS
Portfolio Laggards: TYGO ZENV CVNA IONQ
Small caps were hit hard in the market this week and the portfolio suffered as a result. In the face of an overall up-market, the small caps were down a somewhat shocking 3.15%, a 5.5% difference between the NASDAQ in a single week! This dichotomy is highly curious considering the consensus is that rates have peaked given softening economic and Fed indications, but it could just be a one-off event to sell after a huge week prior. I am highly interested to see the direction of small caps from here - I think they can move higher given the supply issues of components and labor are easing finally. Given my thesis here, I have positioned fairly speculatively, but I know the best gains are made at inflection points after making an informed decision. I will continue to evaluate as we go, and hope the next 1.5 months goes well for everyone! :)
Holdings: PINS NVDA LYFT PLAY AGCO CVNA HIMS IONQ(0.75x) PSNL(0.5x) ZENV(0.5x) TYGO(0.4x), cash 0%
P.S. I have lost over $1.1M on TYGO - huge lesson to respect the technicals :(
Stocktrader
Hi Stocktrader,
Last week Down 1.31%
YTD UP 101.51%
Extremely sad to know about your loss in TYGO....try to regroup & look ahead to better result from your entire portfolio.
Saleem
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