US stock market is ignoring most fundamental issues like Interest rates, inflation & Fed policies as Wall Street is " too excited about AI " and its many benefits....
AI is all about making " more money " which overrides many " minor issues mentioned above...
AI is a worldwide phenomenon NOW....
Countries are not only competing for AI hardware / software but also getting data centers...
AI is a new race for enhancing productivity, leadership for excellence....
Every Industry is being impacted.....a new Industrial Revolution taking place....
As most investors / traders know this has " just started "
NOW that everyone understands that AI is real deal......BUT they are afraid of " valuations " of key stocks....
Here is a look @ their RSI as of Friday's close :
NVDA 74.87
AAPL 71.14
ARM 69.26
CRWD 59.85
MSFT 55.29
SMCI 41.36
As you can clearly see that leaders have healthy RSI .....
SMCI is a clear bargain .....
Best way to play AI is to have key players in your portfolio...like 3 from the above list to diversify in AI also.....
Whenever " new thing emerge on wall street " It is best to engage quickly and with conviction...
YES...you can always trade to book profit and reenter .....
You need to play your own trading style.....long term / short term / swing / daytrade
Hopefully most participants understand, AI is a faster way to make money these days.....
Good luck with your own strategy and comfort level.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hi Saleem,
Last week: +2.23% (YTD: +17.13%)
Portfolio Leaders: TWST HOOD SPOT
Portfolio Laggards: ALAR CVNA
In an up week for most indices, the portfolio performed inline. The interest rate tug of war continues with data coming in consistently mixed. This week sees CPI/PPI and a Federal Reserve meeting. Although nothing is expected from the meeting, the commentary from Powell will be scrutinized. Despite this, I think interest rates are the sideshow to the earnings picture where some companies are doing well while others are struggling. There is a large disparity between winners and losers right now, so picking the correct plays for this environment is essential. I fear a consumer spending slowdown coming, but businesses are ever excited to allocate more resources towards AI capabilities. I think the rest of the year continues this way, but it remains to be seen when "everything is priced in already". My suspicion is that we can coast through the end of the year without too much concern as it would be too damaging for most institutions/investors to take capital gains on stocks like NVDA at this juncture. I continue to hunt for new ideas, trying to emphasize relative strength.
Holdings: ZENV TWST HOOD SPOT FIVE ALAR CVNA AI BMR PSNL, cash 0%
Also, I forgot to mention that the small cap index (Russell 2000) has gone flat/negative again on the year - it is a development worth watching closely.
Stocktrader
Hi Stocktrader,
Last week UP 7.76%
YTD UP 5.16%
Saleem
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