Market review (18/12-22/12)
"Many winning stocks may be companies you have never heard of before. Their best days are ahead, not behind." - Mark Minervini
Let's quickly review this week's market behavior:
$NASDAQ 100 Index (.NDX.US)$ $S&P 500 Index (.SPX.US)$ $Dow Jones Industrial Average (.DJI.US)$ The three major indexes will be released synchronously on Wednesday.
The index continues to be overbought. The trading volume this week is not large, and it is estimated that many people have started their holidays in advance. The correction will come sooner or later, and the market will choose its own route and timing. However, do not confuse the market trends with individual stocks, because some stocks have started to show some small cycles (3-8 days) of consolidation (climax flag). I won't be surprised if those stocks continue to rise rapidly.
Weekly charts of NDX and SPX: NDX continues to reach new historical highs, while SPX is close to its historical highs. Here, we can see the excessive extension of both indexes, which is further away from the high point of July and the 10-week moving average. There are only two methods, a pullback or consolidation, to address this excessive extension. Therefore, it will be a very low-cost trade to go long on the index in the short term.
By the way, $Invesco Exchange Traded Fd Tr S&P 500 Equal Weight Etf (RSP.US)$(Weekly chart), the S&P weighted average index is very bullish in the long term (although it may be difficult to sustain the upward trend in the short term). With such strong breadth, please stay optimistic 🙂
Currently, cash accounts for 61.4% of the portfolio. I will enter the vacation mode and find a tropical island to relax by the beach for 2-3 weeks with a few books, replenishing energy for 2024. 🌞
Wishing you all a Merry Christmas. See you in 2024. 🫰🏻
"In trading, the greatest victory often comes from riding the waves of trends, rather than predicting the beginning of trends." - S.Z
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Cherry Cat : Marry Christmas![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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MattSully : Have a Merry Xmas and Happy New Year bro!![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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icezzz : Happy holiday
Ping983 : Merry Christmas