Weekly Review Li Stocks - 23rd Dec 2022
Here is the weekly review figures and charts that I do every week. It is useful only for those interested in trading or those who hold multiple shares and based on performance would like to keep re-balancing as we go. I do hold a number of Li stocks and like to trade. This is the reason I include a number of Li Stocks in my analysis.
Please note:
This is no reflection of all AU Li stocks as I have only included those that I am interested. In my list are shares that I hold, held before or planning to buy in near future. Since this is my list, I may have missed some good stocks. The averages are simple averages and not weighted averages. So the average don't reflect AU Li average. This is just for my tracking and analysis. I have both ASX and US stocks in two separate figures.
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Please note that all my analysis are from a trading perspective looking at short-term view.
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Diary - There is no Diary again this week, sorry. I had to do a lot of chopping, moving etc. I am very nimble and volatile, hence anything I hold could be temporary, hence that is not much point. Once markets stabilise, I will have my Diary.
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There are no new additions this week, so my stock list contain 54 stocks.
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This week I am travelling and hence have not put much commentary. I am sure many others are as well, so suits that many may not have much time to read also. Analysis from last weekly report as well as Daily Reports cover mostly where we are and possibly where we are heading.
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Overall for this week - General Markets - SP 500 -
Overall for the week we were mostly flat. Last week we finished at 3852, this week at 3844. Many times we played in 3700s but bounced back every time.
Short term, a week or two, probability is good for a bounce. First hurdle 3900. Good chance of testing gap at 3995. What will happen after that, not sure. Medium term its still looking bearish. Most analysts still feel strongly that we may see 3100/3400 (average 3250) sometime in Q1 2023, possibly in January. The thing that may push it down, is the narrative changing from Inflation to Recession and Earnings Reports. But there is a chance, yes a chance, that we may even cross 4000 and retest the double top.
The shorters are massive at this stage. The Put to Call Ratio (people going for shorting) is one of the highest in many years. Sometimes Wall street does not like giving easy money - so if everyone is shorting and trying to make money that way, it may do something to scare or squeeze them. Possibility. But when double top happened at 4100, many said that it is so obvious that people will short from there that it may not happen - but it did happen. So best to be open to anything and follow price action.
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For long termers, there is a good chance that we may play around 10-20% decline if SP 500 declines by another 15%. But stocks have fallen a lot, so we may manage to stay within 10%. For those trading, unless one is shorting the market as well, it may be difficult to make a swing trade even if we cross 4000 - why - punters are still wary of the markets and the rise in index may not be easily bought.
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.Personally: As I have been writing after 4100 on SP 500 did not hold and formed a double top, I have gone defensive. Last week I was 50% cash. This week I am 60% cash. Got out of a number of stocks and rotated some to other sectors (a good number of oil/gas), main criteria of choosing which stock to move - if it is on a good run and looking good for short term. This is the same thing which I said last week, so playing defensive, and focussing on a particular stock rather than sector - at this stage. Watching markets to see when to buy back all my stocks that I have sold. I am sure it will happen. We have endured one year of turmoil, so have managed a lot. Sometime in Q1 or early Q2 of 2023 we may see, once again, sentiment return along with big gains. It will happen, just need to be patient and overcome this last phase of turmoil.
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Here is the Figures for the Week:
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Figures for US Li stocks:
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.Rise from June Bottom:
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(20min delay)