Today I thought, "I forgot to add all the daily data together for last week's weekly data". Then realized I am still in this week.
gm stockaholics! happy friday to all! baaaack from vaca. how was everyone's 4th? yeah that was a little awkward having the holiday fall right in middle of the trading week. that's why i just took the whole dang week off. feelin' pretty refreshed here. hope everyone had a really nice holiday! did i miss anything this week?
Seems like Biotechnology -- XBI is picking up the mantle Technology left behind. That's a good sign for a market that is in need of market leadership. Further, staples and utilities are getting bids showing the level of demand for equities even with persistently higher yields. The bad news is technology is still getting bought into dips despite a need for further consolidation. Broadly speaking, to me that signals a market that is likely to remain rengebound at the upper quartile of this year's range, unless other sectors, other than the XBI, make up for the slack. Note aside, to think funds have disfavored the biopharma space because of the new interest rate fixture in the US is mind-boggling. It just comes to shows stocks that outperform are largely those in disfavor irrespective of their technicals or fundamentals. I never understood, nor will I ever understand, why analysts continue to treat the paradigm between stocks and its alternatives (bonds, cash, debt, etc) the same way as before when clearly relationships, patterns and correlations have changed as a result of interest rates being held at crisis levels for nearly a decade. The idea that bonds offer an investment alternative to equities, specifically staples and utilities, is an incomplete view of today`s situation. Here, again, we have a perfect example of two sectors that were disfavored and underowned for the first five months of the year into their correction phase, and in the last 6 weeks have posted the biggest gains. Might as well turn off the spigot and forget about markets with little improvement in price structure. I'll revisit in a year to see where markets trade with respect to the price levels drawn today. Might not seem as the most appropriate decision at first sight, but its the right decision for a market that is trying to find its new identity and has never yielded an inch. My best advice: pick your favorite stocks and draw up a plan. Let the plan evolve and make decision only once important price level are reached. You`ll make less mistakes and fret less about the ins and outs of the market. If the plan doesn't work, but you still like the stocks you own, do it again in a year, two, three, four, five years. Odds are the bet will pay off in time.
Jobs report overall good for market I guess Strong headline number while wage growth isn’t too strong
