Bull Market Health and Portfolio Updates
March 10 2024, Update
Very quick update this week.
Starting from the indexes, last week we had:
NASDAQ -1.17%
SP500 -0.22%
RSP (Equal weight SP500) +0.96%
The Nasdaq had an ugly close last Friday. Such a bar often indicates further downside. Let’s see.
Recently, I created a scorecard for myself to gauge the health of the market. Last week, my scorecard was at 100 out of 100 for the Nasdaq, S&P 500, and the Equal Weight S&P 500 (RSP).
This week, it dropped to 90/100 as the momentum indicator (MACD) began to show signs of deterioration: a warning sign. See below if you are curious about how I built it:
Overall, the market is healthy, yet we have been anticipating some form of correction or pullback. Let's see if it will materialize shortly.
Industries
Looking at all industries that have outperformed the S&P 500 over the last 6 months, Bitcoin, Semiconductors, and Biotech remain at the top. Notably, Gold is emerging as an emerging sector.
Additionally, defensive areas like Utilities and Materials had a good week.
My current quick take is that we are in a bull market, and corrections should be seen as buying opportunities.
What are the threats? Geopolitical tensions and significantly bad economic data.
Next week, we'll receive the CPI reading for February 2024, and we're hoping not to see an overly high figure.
Portfolios
10X LARGE CAP MOMENTUM POT
Overall the Portfolio is at +123% since inception thanks to the incredible run from SMCI 0.00%↑.
LI 0.00%↑ had a strong pullback. Let’s see if it can hold within my Stop Loss.
I updated my Stop Loss as shown in the table above.
10X SMALL CAP MOMENTUM POT
Here my “stop buy” orders for DFH 0.00%↑ and ARQT 0.00%↑ were triggered. Then both names pull back. Below is the current picture of the Portfolio with updated stop-loss levels.
As I am fully invested in both portfolios, I am not doing anything in this coming week.
NEW! WATCHLIST (Link)
From now on I’ll share here my watchlist. It is made of companies and chart setups I like a lot but that I cannot add to my pots because, for example, I am fully invested, which is the case right now.
At the link above you can access my live watchlist with an indication of the date I added the company to the watchlist and its performance from there.
You’ll find my favorite setups for the week. Below the charts of RMD 0.00%↑ VVX 0.00%↑ OPRA 0.00%↑ ADMA 0.00%↑ YOU 0.00%↑ ML 0.00%↑ VMD 0.00%↑ NBIX 0.00%↑ CMPO 0.00%↑ DXPE 0.00%↑ MNKD 0.00%↑
That’s all for the week!
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Important: This is not investment advice. Consult a licensed financial advisor before making any investment decision.