Monday, May 27, 2024

US stock market, AI rally in overdrive....

 US stock market has seen an immense rally powered by AI related excitement.

YES...we are making series of new all time highs....

YES...we are getting " overbought "

YES...we should diversify into other sectors..

YES...we should book profit..

YES...we should look @ oversold stocks with good prospects..

Markets can make your strategy / exposure sure win formula

BUT....

There is a flip side...

Market can turn quickly on you...

Market can give you false confidence..

By the time one wakes up...generally its too late..

SO...

Do NOT fight for the last $

Have an exit strategy on all stocks in your portfolio..

You CAN always reenter after stocks cools down a bit

AI related stocks are very HOT right now....

Always have a " balanced portfolio " some hot & some cold "

Always factor which sector can outperform based on future gains...

DO NOT be mesmerized by tickers...NVDA is a great stock with great future BUT may have lower return on " near terms basis "

YES...we are all surprised by some stocks like NVDA...which may keep going....BUT IF you HAVE booked profit...then this should not matter much in short term as your next picks may perform better going forward....

World markets were open today except NYSE & London.....

Added 75% SHOP @ $78.25 in Toronto....making SHOP my largest position @ 32% of portfolio...

Good luck with your own strategy and comfort level.

BLOG Does NOT give buy or sell.

Saleem


6 comments:

stocktrader_1996 said...

Hi Saleem,

Good luck with big SHOP!

Stocktrader

stocktrader_1996 said...

Hi Saleem,

Last week: +7.78% (YTD: +18.03%)
Portfolio Leaders: ZENV ALAR FLYW
Portfolio Laggards: BMR AI ULTA PSNL

In a week where the indices diverged - Nasdaq up, S&P flat, Russell 2000 down - the portfolio had a few good winners to drive big gains. So far earnings season has gone well for the portfolio stocks and only a few remain, AI and ULTA this week. As we head into the slow summer months, I worry about the smaller stocks in the portfolio and maybe a drip-down effect, but I'm not going to worry too much about it if the news is unchanged. I continue to look for new stock ideas to freshen the portfolio as some stocks within hit near term price expectations.

Holdings: ZENV HOOD ULTA AMKR SPOT FLYW AI BMR ALAR PSNL, cash 0%

Stocktrader

Stocks100 said...


Hi Stocktrader,

Last week UP 3.35%

YTD UP 1.90%

Saleem

Stocks100 said...


Hi Stocktrader,

Bought NVDA @ $104.95 in Toronto, much smaller allocation

Saleem

Stock Rookie said...

Hello Saleem & Stocktrader,
Congrats both on a positive +++ week. Good luck with NVDA.

I just sold all my NVDA @1,120 and bought SPOT and IA. Thank you!

Stocks100 said...


Hi Stock Rookie,

Great trade with NVDA $$$$$

Added more shop @ $77.95 in Toronto....

Good luck with new buys of SPOT & AI?

Saleem