The Weekly Selection: 08/13/2023
Volume 50
Introduction
Hello Investors,
Welcome in to the 50th volume of ‘The Weekly Selection’. One week from today will be my 1 year anniversary article, and I cant wait for you guys to see it! Along with the usual Sunday article, there will be something additionally attached within, so keep an eye out.
Moving right along, lets get into this weeks content. Taking a look at the indexes, we can still see indecision on the daily charts. I think many are under the assumption that the top was put in, but there are a number of standout sectors and industry groups who I think will be contributing factors in a continued run on primary indexes. Some of the top performing industry groups and sectors include:
Computer Hardware - IONQ 0.00%↑ SMCI 0.00%↑ DELL 0.00%↑
Leisure Travel/Booking - BKNG 0.00%↑ ABNB 0.00%↑ EXPE 0.00%↑
Education Software - DUOL 0.00%↑ SPOT 0.00%↑ EB 0.00%↑
Building Maintenance/service - IBP 0.00%↑ FTDR 0.00%↑ MYRG 0.00%↑
Computer Software Databases - MSTR 0.00%↑ MDB 0.00%↑ CFLT 0.00%↑
Index Charts
SPY 0.00%↑ with annotations.
XLK 0.00%↑ Tech continues to see large drawdowns. Overweight exposure in indexes is primary cause, imo.
XLE 0.00%↑ energy putting in strong week after strong week. Was quite early here, and now beginning to de risk my energy heavy portfolio.
Tip of the week
Recognize the difference between trend and indecision. In my opinion, a primary index moving down is not necessarily a signal of a new downtrend or bounce. This may sound silly, but without truly consistent and distributive selling, I see this as no more than a shakeout. Recently, I have seen many attempting to top pick this price action, with the expectation of an equal move down that we saw up. When price is trading flat or slightly up/down for weeks on end, Its in my best interest to look elsewhere for opportunity or take my hands off the wheel and do more watching than trading. Indecision in markets provides nice volatility for day trading, but offers little in the way of helping us gauge our long term outlooks until confirmation is provided.
Charts
URA 0.00%↑ slower moving commodities trade. With some of the other notable commodities breaking out, I’m starting to see some opportunity in Uranium. There is a very clean setup to be had here, and I will be closely monitoring this.
Whether it be tomorrow or sometime this week, I think SMCI 0.00%↑ will offer an entry. The CEO has gone on to say that he believes they will crush the current fy24 and fy25 revenue expectations, all while SMCI 0.00%↑ trades at a fair valuation. Their primary source of revenue is in the server and storage systems field, which they have increased by over 100% in the LTM. SMCI 0.00%↑ has been mentioned in this newsletter many times, and it has been a consistent performer for equity swings thus far.
DE 0.00%↑ is a great example of the type of stock I am looking for during this primary index indecision. Older business, strong technical setup, clean financials. Looking to push ATH in the coming weeks.
That’s all for this week!
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