Uptrend, Portfolio Performance and New Buys
November 24, 2024 - Update
Market Recap: A Positive Week for the Nasdaq
The Nasdaq had a strong week, closing at +1.73% on above-average volume. All key moving averages are trending upward, signaling that the uptrend remains intact.
Here’s a quick summary of the market environment:
US stocks remain well-positioned, supported by a favorable economic backdrop.
The market is pricing in expectations of lower taxes and deregulation under the new administration.
Access to credit remains robust in the US.
Q4 GDP nowcast currently stands at 1.9%.
The Fed is expected to cut rates again in December, maintaining a market-friendly monetary policy.
Valuations in some sectors may cap upside potential for large-cap stocks.
Market breadth is improving across the board, with broader participation.
Corrections should be viewed as buying opportunities.
Leading sectors: Financials, Industrials, Information Technology, and Utilities.
PORTFOLIOS REVIEW
10X MOMENTUM PORTFOLIO (link to portfolio details and trades)
The momentum portfolio continues to thrive in this bull market.
Highlight: RocketLab is the star performer, up +211% in just two months—an annualized return of 40,637%! Unsustainable? Absolutely. But for now, let’s enjoy the ride while it lasts.
Notable Exit: I was stopped out of Acadia for a 14% loss. The healthcare sector has struggled recently and is one to avoid for now.
New Buy:
Plan to buy 370 shares of Similarweb if it hits $12.59.
Initial Stop Loss: $10.75.
Updates:
All Stop Loss levels have been updated.
Portfolio Performance: Annualized return remains above 100%, even after almost two years since inception.
Below are charts of the current open positions in this portfolio.
10X UNDERPRICED GROWTH (link to portfolio details)
My newest portfolio is off to a great start.
Highlight: Applovin has been a standout performer. Since purchase, it has almost tripled (+196%), but I haven’t managed to build a full position as it hasn’t revisited its 21-day moving average.
Notable Exit: Sold out of EH 0.00%↑ for a 19% loss. Unfortunately, it seems the timing for Chinese equities is still off.
New Buys:
This week’s planned moves:
144 shares of HIPO 0.00%↑ at $34.02 (full position).
450 shares of DLO 0.00%↑ at $10.96 (full position).
45 shares of FOUR 0.00%↑ at $110 (full position).
55 shares of Block ($SQ) at $92.27 (new position).
Initial Stop Loss: $77.
Why Block?
The weekly chart looks strong (see below). The company is growing 15% YoY, improving profitability and margins while heavily reinvesting for future growth. Based on my analysis, Block is undervalued. Let’s see how this plays out.
So the odds look good for Block ($SQ), a company growing at 15% YoY, improving profitability and margins while investing heavily in its future. The company is undervalued based on my analysis. Let’s see how it goes.
Below are charts of all current positions in the 10X UNDERPRICED GROWTH Portfolio, ranked by relative strength.
Looking Ahead
That wraps up the week! Let’s see how things shape up as we close out November.
Important Note: This post is for informational purposes only and does not constitute investment advice. Always consult a licensed financial advisor before making any investment decisions.