U.S. retail sales climbed 3% in January, a sharp improvement from December’s 1.1% decline. It was also above the consensus forecasts. This does not look like recession. The market has started feeling good and the traders are back in the market. Growth stocks are making a strong comeback and lots of good quality beaten-down names are up for grabs. I picked 3 stocks yesterday and there has been pretty strong buying today in each one of them. I am adding a few more names to the list
Daily Dose
Is the US market changing its character
It is the behavior of the market that tells the state of the market.
2022 was a terrible year. But things seem to be changing in 2023. Traders are now buying the bad news and today is the perfect day to understand this. The US market fell sharply after a hotter-than-expected inflation report. The consumer price index, which measures a broad basket of common goods and services, rose 0.5% in January, translating to an annual gain of 6.4%. Ideally, the market would have sold off. But here’s the surprising thing – after a brief sell-off, the US market staged a strong comeback. This is highly bullish and is not the first time the market has exhibited this characteristic this year.
The Best Large Cap Trades
January has been a great month for equity investors. Lots of stocks have bounced back. I shared a conservative Large cap portfolio on Jan 03 and it’s also up 9%. It is such a welcome relief to see some great moves and with every passing day, the confidence seems to be coming back. After a long time, the market is buying bad news. Next week, US Fed will meet to signal what it intends to do this year and it can be disruptive but if the market rallies even after that, there will mad rush to buy equities. If you have been out of the market for a long time, then the time has come to get back and at least make some trades and see how it goes.
In this article, I am going to share some Large cap textbook trades that worked and also where new opportunities are popping up.
Stock of the Day – CX
CX looks like a great buy in the current market environment. Here’s why
Large Cap Value Portfolio
If 2022 was all about inflation and how high the US Central Bank can go, 2023 will be about Corporate earnings, recession risk, and valuations. Value stocks outperformed Growth stocks in 2022 and this trend is set to continue. It’s time to allocate long-term investment towards Value and in ETFs like Vanguard Value Index Fund VTV. It was down 6% last year but much better than Growth ETF which was down 34%. Here’s a list of Value stocks that seem to be holding up and can do well this year. The list is an excel sheet with a chart attached.
The Large Cap stocks in Bull Market
The market has a tendency to change its character as time changes. CY 2022 turned out to be a great reset year – when momentum strategy and the momentum stocks got hammered beyond recognition. Now a new set of stocks seem to be emerging from the ashes to take on the leadership role. Here is a small list of Large-cap stocks with attractive charts and this is the list one should focus on for 2023.
2022 – Not ending well
Everything that can go wrong is going wrong. The bulls seem to have given up and there is just no energy in the market.
Will it end well?
The US stock market has been terrible so far in 2022. I know it’s an understatement. S&P 500 is down 15% Year to Date, but this masks the damage one has seen in the portfolios this year. NASDAQ, a proxy for growth stocks is still down 27% YTD. But here’s the good news, the market is always staging a comeback on signs that the US Central Bank might slow down or Pause next year when it comes to rate hikes. S&P500 and NASDAQ posted decent gains in Nov, all thanks to the move that came in the last 2 hours yesterday. We have seen so many strong moves this year but they never last. Will this time be different? Will Dec end well
Large Cap Portfolio 11/27
The stocks that look good on charts
The Market pulls back amidst Economic Mess
Here’s the daily update
[Read more…] about The Market pulls back amidst Economic Mess