Market Review and Prospects (27/11-01/12)
“The application of traditional wisdom will generate traditional returns rather than superior performance.” -Mark Minervini
Let's take a quick look at the price behavior of the market this week:
$NASDAQ 100 Index(.NDX.US$ Funding was attracted on Tuesday, and there was a split on Monday;
$S&P 500 Index(.SPX.US$ There were three differences on Monday and Tuesday, and funding on Thursday;
$Dow Jones Industrial Average(.DJI.US$ Disagreement on Monday, funding on Tuesday, three differences on Thursday.
This week DJI > SPX > NDX
What is worth noting is $Invesco Exchange Traded Fd Tr S&P 500 Equal Weight Etf(RSP.US$ with $Direxion Shares Etf Trust Nasdaq-100 Equal Weighted Index Shares(QQQE.US$ Starting this week, SPY and QQQ have greatly surpassed SPY and QQQ, reflecting the expansion of breadth. Money no longer just likes the Big 7 technologies. Many small and medium-sized growth stocks participated in the rally. It is worth noting that $ARK Innovation ETF(ARKK.US$ Insane performance over the past month (30% +)...
The index is still overbought (which doesn't mean it needs to be shorted), and stocks have begun to rotate. Stocks that have been rising sharply before have begun to show a slight correction or sideways break (normal phenomenon), and some stocks have just left the consolidation platform (upward breakthroughs). Anyway, it's very friendly to traders. It is normal for the index to pull back by a reasonable range in the future or continue to correct sideways, or even pullback/correct after continuing to rise in the short term.
I like to see the drastic increase in breadth. This reflects everyone's state of mind. The sharp spread of capital to small and medium-sized stocks without focusing on the top 7 technologies shows that people are not too worried about short-term risks. Conversely, if capital is concentrated on the 7 major technologies, it reflects everyone's concerns about short-term risks.
The weekly charts of NDX and SPX are far from 10MA (but still a bit far from the limit% in recent years), so movement in any direction retains the possibility, but as long as the market does not have a large fluctuating downward movement, it will not have much impact on the short to medium term trends of individual stocks.
A few names have been added this week, and some of my previous holdings have been trimmed appropriately. I always sell half of the corresponding position when my current position increases by more than 20-25% (or 3R) to lock in some profit. For example, you bought three times (A, B, C) at three different purchase points of a stock. When position A rose by 20%-25% (or 3R), you began to find the right time to sell half of your A position, while leaving half of A, B and C to continue jogging along the trend, and so on... This is a new selling strategy I added after the July-August trading summary, which guarantees cash liquidity while maintaining the upward trend of the stock. Currently, cash accounts for 35.1%.
The weekend is a time for traders to calm down and summarize and prepare. In the long run, all effective efforts will eventually pay off~
“Trading isn't about making predictions or hoping to get some kind of outcome. It's about managing risk and responding to market price behavior.” -S.Z
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
