Sunday, August 2, 2026

US stock market Technicals are bad but oversold

 US stock market is in deep oversold condition, thus an oversold bounce is happening.

Do NOT put your celebration hat, rallies are lasting a day only.

Market Internals are absolutely horrible.

Many senior strategists are extremely defensive 

This year, market is decidedly bearish.

Do NOT overstay your welcome 

Here is how my last week ended.

Last week       UP14.25%

YTD                UP 58.54%

Here is my weighting on 22.67% exposure 

AMDL               42.67%

MU.TO.             33.49%

GGLL                 19.28%

MVLL                   4.58%

BLOG does NOT give buy or sell.

Saleem 


2 comments:

stocktrader_1996 said...

Hi Saleem,

Congrats on the nice rebound week!

My results last week: +3.13% (YTD: -3.47%)
Portfolio Leaders: AEVA PONY BFLY
Portfolio Laggards: BODI AMBQ

It was another volatile week but the averages came out ahead and the portfolio outperformed. I think sentiment had/has finally washed out enough that we can build purposefully from here, regardless of the gyrations from the new Fed or lingering Iran. Good stocks and earnings will always be rewarded, and our job as investors is to find those stories and ideas, hopefully before everyone else. These next few weeks will see a lot of my companies report, and I look forward to fully exploring their reports and conference calls. I am comfortable with the portfolio here (as well as being out of town a lot in recent weeks) and haven't made changes in a while.

Holdings: TWST BFLY PONY AEVA RKLB AMBQ BODI CODA NN NNOX, cash 0%

P.S. I do see indications of liquidity improving and spreads narrowing in my smaller stocks, and I find this to be a good sign for market health also.

Stocktrader

Stock Rookie said...

Hi Salem & Stocktrader,

Congrats both on a positive week. Let's hope it will continue for everyone :-)

Simon