MAY 29 2023 UPDATE
The market is telling. And 1 new stock I am buying.
Important: this is not investment advice. Consult a licensed financial advisor before making any investment decision.
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Quick update for the week.
On Monday the US market was closed because of Memorial Day.
My current thinking in a nutshell:
The market is strong in one sector only which is technology, fueled last week because of the surprising positive results from Nvidia, confirming the strong demand behind the scenes for Artificial Intelligence infrastructure;
Only the Nasdaq looks fully healthy
The rest of the market is lagging
Defensives like Staples and Energy are out of favor right now which speaks to a low level of concerns regarding an imminent recession
The agreement on raising the debt ceiling is now done, taking away the biggest threat on the markets in the very short term
We may have a market that goes up selectively as it happened in 2022 with the energy sector… it may happen the same in 2023 for the Technology sector
Monetary policy is restrictive (M2 keeps contracting) which is not good for stocks and in fact many bears keep predicting a hard landing
This summarizes the picture for me right now. I’ll keep staying alert on any really bad news from the economic indicators and at the same time I’m having a close look at the technology sector, especially software stocks. Why? Because AI will be delivered through software and there I expect the next wave of winning businesses.
Below is the monthly chart of the Nasdaq that looks very solid.
There are many stocks that just would make sense to buy here: MSFT 0.00%↑ ANET 0.00%↑ ADBE 0.00%↑ INDI 0.00%↑ UBER 0.00%↑ SMCI 0.00%↑ AMD 0.00%↑ SNPS 0.00%↑ ASML 0.00%↑ ACMR 0.00%↑ to name a few.
PORTFOLIOS
10X LARGE CAP MOMENTUM POT (link)
I was stop-out from RMD 0.00%↑ for a 7% loss
The AMAT 0.00%↑ order was triggered and added to the POT
I am creating a BUY STOP ORDER for 4 shares of SNPS 0.00%↑ at 445$. If triggered I’ll create a Stop Loss at 409$
I’m trying to ride the technology rally here.
10X SMALL CAP MOMENTUM POT
My Portfolio is in the green with OPRA 0.00%↑ that keeps just going up! I’ll try to ride it as much as possible.
I am not adding any positions to this POT this week.
Have a great week!
Important: this is not investment advice. Consult a licensed financial advisor before making any investment decision.
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