Finally after 2 years of choppy market, we have a " bull market " on hand....
Character of bull market is totally different than range bound or choppy market...
Bull market means, we go to a much higher target than previous highs....plain & simple...
Strategy in a bull market needs rejig.....
In bull market front line stocks go UP...then rest...then go UP again & again....
Then there are 2nd tier stocks which plays catch UP.....
Then 3rd tier stocks.....
RSI plays very little role in a bull market...RSI goes to 90 easily...then sideways to moderate intraday pullback and then back UP...
YES you need to stay IN or get into stocks that are doing well on any weak open....
Bull market normally last 2 years in a frenzy mode.....
Here are some front line stocks with RSI for close examination, study, research & action :
NVDA 80.74
AMD 80.34
TSM 77.26
MSFT 75.80
QCOM 73.12
PANW 74.75
META 72.58
DDOG 71.97
ESTC 69.69
GOOG 68.94
MU 63.85
AMZN 60.72
INTC 57.79
AAPL 56.97
As you can clearly see that most stocks in above list are well below overbought 80+++RSI
You can start your own zero cost ETF by buying all of the above and have a very good chance of beating most celebrated ETF managers....including Cathie Wood.....
YES look @ the above list of stocks and decide which IS the next buy for you...
In a bull market adding same stocks like buying higher is a great strategy also....
SO...plan your buys with a sense of urgency.....
Bull market can move UP in a hurry as we saw on Friday....
Good luck with your own strategy & comfort level!
BLOG does NOT give buy or sell.
Saleem
3 comments:
Hi Saleem,
Last week: -2.72% (YTD: -9.45%)
Portfolio Leaders: none
Portfolio Laggards: PSNL ENPH TYGO HIMS
It was another disappointing pullback week for the portfolio as most averages rose (Russell 2000 declined again). As rates rose again, some of the most speculative names or future story stocks felt the most pain, and the trend from the start of the year has been some definitive give back after last year's stellar 4th quarter. I still look towards earnings reports to see if I have the right names to continue this year, but may need to make some adjustments on the low relative strength ideas.
Economic data continues to hold up well, especially in the consumer spending area, but this shouldn't be a surprise given how much incomes have risen since 2020 with lack of labor supply. Assuming inflation doesn't come roaring back, we appear to be in a very good environment for both the stock market and the economy and I am still optimistic about the broadening of the market rally to include many smaller cap companies. One underlying theme that should not be forgotten will be the impact of AI in every company's business model to improve efficiency, ultimately trickling down to the bottom line. With lower input costs, continued product demand, and efficiencies from AI, almost every company should show improved profitability in coming years - it could be a great ride for a while!
Holdings: SPOT SNAP AGCO ULTA HIMS LYFT MTRN ENPG PSNL ZENV(0.5x) TYGO(0.5x), cash 0%
Stocktrader
Correction: ENPH not ENPG in holdings
Hi Stocktrader,
Last week Down 7.90%
YTD Down 12.03%
Saleem
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