Uptrend Continues: Assessing the Market's Behavior and Portfolio Opportunities
July 30 2023 - Update
My quick update for the week:
Looking at the SP500 Equal Weight, I regard it as the most useful index for assessing the overall market behavior, and it still shows an uptrend. While I sense a pause may be approaching soon, I can only evaluate the chart in front of me, which still indicates an uptrend.
Economic data suggests that a recession is unlikely, and in fact, GDP data for the second quarter came in stronger than expected. The Federal Reserve raised interest rates again, and it's highly likely that we are nearing the end of this hiking cycle. Credit is tightening, but at a slower pace, and M2 (the total amount of money in the system) is no longer shrinking.
Personally, I'm becoming more optimistic as I look ahead to the next 12-24 months. This implies that the worst may be behind us, although temporary corrections will likely occur as usual. Let's observe how the market unfolds and remain flexible for all scenarios.
PORTFOLIOS
10X LARGE CAP MOMENTUM POT (LINK)
LI 0.00%↑ AND AMAT 0.00%↑ are performing well, and I've raised some of my Stop Loss levels. Nothing more to do here but wait and see how it develops.
The Automobile sector is particularly strong, and I find very interesting NKLA 0.00%↑ and $RIVN 0.00%↑ if they go above $2.5 and $27 respectively.
10X SMALL CAP MOMENTUM POT
Two new names were added last week as the STOP BUY orders were triggered. Now I have 5 positions in my portfolio.
All positions are in the green and BRAG 0.00%↑ is up 12% in one week!
I still have 45% of the portfolio in cash, aiming to concentrate more going forward with a maximum of 5-6 names in the portfolio at any given time.
For that reason, I plan to buy more GENI 0.00%↑ and CREX 0.00%↑ if they keep moving up. Also, I’ll be adding a new name this week in a very hot sector: Biotechnology & Artificial Intelligence. Below are the BUY STOP orders I’ll be creating for next week:
BUY STOP ORDER for 125 shares of GENI 0.00%↑ at $8.03 (it will trigger if the price touches 8.03 or above)
BUY STOP ORDER for 250 shares of CREX 0.00%↑ at $4.01 (it will trigger if the price touches 4.01 or above)
Potential New addition: BUY STOP ORDER for 285 shares of QSI 0.00%↑at $3.5. If triggered my first Stop Loss will be placed at $1.97 giving the stock plenty of room to wiggle.
Here is the chart for QSI 0.00%↑
The stock is extended, so there's a concrete risk of buying it and experiencing a drawdown soon after. However, the volume is incredibly high, so I'm willing to take the risk.
That's all for the week.
Have a great week ahead!
Please note that I'll be on the move from next week until mid-late August. As a result, my posts and updates could be more unpredictable and brief. Nevertheless, I'll keep you posted on any changes to my portfolios.
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Important: this is not investment advice. Consult a licensed financial advisor before making any investment decision.