Trying to pick winners in a frothy market.
February 19 2024, Update
Let’s start with a look at the Equal Weight SP500 weekly chart:
The chart looks healthy. Volume has been increasing and there was some improvement in its relative performance vs. the SP500. A good sign.
Also, the NASDAQ looks healthy even if it was down for the week:
What concerns me? Well, the 10-year treasury yield keeps looking bullish which we don’t want to see:
Data from the economy keeps being too strong, especially in the job market. Oil prices are trending higher too:
My take:
I still think that some sort of a correction is in the cards after a strong rally;
I think we are witnessing a technology revolution that is difficult to stop and any correction should be seen as a buying opportunity of the best tech companies;
Inflation data and a strong economy need to be monitored as they might imply higher rates for longer than expected…
Otherwise, we are in a market in an uptrend until proven otherwise.
Let’s have a look at the industries:
Over the last week Crypto, Chinese, Energy, Solar, Materials and Biotech had the strongest performance. Looking at a 6 months timeframe here are the strongest industries:
Cannabis, Blockchain, Semiconductors, Biotech, Tech, Communications, Uranium, and Transportation are among the industries outperforming the SP500.
PORTFOLIOS
10X LARGE CAP MOMENTUM PORTFOLIO
Last Friday, SMCI 0.00%↑ dropped 20% in a single session after the crazy run of the last few weeks. I raised my Stop Loss to 627 USD. I am still up quite a lot on the stock:
Also, I was stopped on SQ 0.00%↑ for a small 2% loss. I am not doing anything else on the portfolio this week.
10X SMALL CAP MOMENTUM PORTFOLIO
Last week my SYM 0.00%↑ order was triggered. Below my Portfolio with updated Stop Loss for each position:
Here is what I am doing this week:
Creating a BUY STOP order for 255 shares of MGNI 0.00%↑ if it goes to 10.46 USD. If triggered, I’ll set my first stop loss at 8.77 USD
Magnite already present in my long-term portfolio, is in the media platform business and is part of the Tech / Software industry group. It popped last Friday on heavy volume. I like the chart. Let’s see how it goes.
That's all for this week!-
Important: This is not investment advice. Consult a licensed financial advisor before making any investment decision.
