The market is still looking like it is in the throes of a continued meltdown. However, it does appear to me that we might be approaching a short term bottom, perhaps even this week.
The Naz looks like it is approaching oversold territory. Five times more stocks are making new lows vs. new highs. Additionally, only 28% of stocks on the Naz are trading above their 10-week MA, which is a slightly oversold condition. Be watching this week for continued downward action. Were we to get a reversal this week or next, it could be a fairly healthy bounce back.
However, news and fundamental data from earnings and economic reports in July, and the perception thereof, will be the main drivers of the market in the near term.
If you’re looking to get bullish here, you’re either playing with sticks of dynamite, or, to quote Ronald McDonald, “you’re too fuckin’ drunk to taste that Happy Meal.”
Last week, I trimmed nine stocks from the focus portfolio. The group of stocks was flat last week, gaining only 0.18%. However, the SP500 lost almost 3 % and the Dow 4% for the week, so all things considered, it was a win.
So far, since inception:
Focus Stocks: +11.83%
S&P 500: – 8.92%
Dow: – 11.88%
Naz: – 6.95%
Top three winners:
MEE +49.60% (realized)
FDG +35.13% (unrealized)
WLT +28.40% (unrealized)
Top three losers:
GLW -9.51% (realized)
MTL -6.50% (realized)
SID -5.91% (realized)
Sector allocations: Energy 26%; Materials 35%; Industrials 24%; Info Tech 7%; Consumer Discretionary 8%.
Holdings: (most recent prices) and original purchase prices:
[[AGU]]@86.26 [[BIG]]@ 29.05 [[CLF]]@89.40 [[CNX]]@91.41 [[FDG]]@69.30 [[FLS]]@121.10 [[PBR]]@65.55 [[POT]]@199.26 [[WFT]]@41.99 [[WLT]]@83.87Disclaimer: This information is not intended to be used as the primary basis of investment decisions. Because of individual investors requirements, it should not be construed as advice designed to meet the particular investment needs of any investor. Consult your financial advisor prior to taking any actions. The information and opinions contained here are those of the author and are not necessarily the same as those of iBankCoin, its principals or its affiliates. Trade at your own risk.
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