Stocks, Sector, and Indexes make the Market!
At any timeframe, we may see some movement in different stocks, or sectors in contrast with others and that is the nature of the market that money circulating to find the best opportunity.
Let's review the market performance in different time frames and see if we can find a meaningful trend.
5400 Ticker (Stocks & Depository notes)are traded today:
Weekly performance: 3238 positive (60%)
Monthly performance: 2183 positive (40.4%)
3 Months performance: 2629 positive (48.6%)
YTD performance: 3317 positive (61%)
6 months performance: 3715 (68.7%)
Yearly performance: 3755 (69.5%)
Based on the data provided, if you look backward you see more stocks with positive performance! In a bullish market, this should be the exact opposite! But something has been changed 3 months ago(February 2021), the front runners of the market (EV makers) bubble started the deflation phase since then, and many growth stocks did the same! Money has shifted toward value stocks and now we see they barely move!
The most important part to analyze is this week with 60% positive performance! I believe the most probable case is this week is a part of correction after 4 negative weeks in NASDAQ, and it will not survive long.
Why do I think so?
Because I do not see any increase in the trading volume..!
Please check the market in the past 50 years and see what happened whenever prices going up at lower volumes!
I believe it is time to forget the sweet times you had from March 2020 to mid-February 2021.
Those days have been past and a new reality rules the markets!
For instance:
Tesla has the highest average daily trading value(2.3-2.4 trillion/month USD trading value in 2021)in anytime frame during the past year followed by Apple (1.2-1.3 trillion USD/month trading value in 2021).
Surprisingly these two companies have the worst performance among 87 companies with over 100 billion dollar market cap!
If you are ranking companies with over 100 Billion dollars market cap based on their performance in 2021:
Tesla with -14.3% ranked 87 out 87 companies with over 100 billion dollar market cap..!
Apple with -4.36% ranked 81out 87 companies with over 100 billion dollar market cap..!
The question is why this happened to companies with the highest daily trading value?
The answer could be :
The market is in the profit booking stage since February 2021! And this is the last stage before the deflationary phase..!
You can not say new investors bring money into these stocks and at the very same time prices went down!
What do you think could be the reason?
Moshkelgosha
At any timeframe, we may see some movement in different stocks, or sectors in contrast with others and that is the nature of the market that money circulating to find the best opportunity.
Let's review the market performance in different time frames and see if we can find a meaningful trend.
5400 Ticker (Stocks & Depository notes)are traded today:
Weekly performance: 3238 positive (60%)
Monthly performance: 2183 positive (40.4%)
3 Months performance: 2629 positive (48.6%)
YTD performance: 3317 positive (61%)
6 months performance: 3715 (68.7%)
Yearly performance: 3755 (69.5%)
Based on the data provided, if you look backward you see more stocks with positive performance! In a bullish market, this should be the exact opposite! But something has been changed 3 months ago(February 2021), the front runners of the market (EV makers) bubble started the deflation phase since then, and many growth stocks did the same! Money has shifted toward value stocks and now we see they barely move!
The most important part to analyze is this week with 60% positive performance! I believe the most probable case is this week is a part of correction after 4 negative weeks in NASDAQ, and it will not survive long.
Why do I think so?
Because I do not see any increase in the trading volume..!
Please check the market in the past 50 years and see what happened whenever prices going up at lower volumes!
I believe it is time to forget the sweet times you had from March 2020 to mid-February 2021.
Those days have been past and a new reality rules the markets!
For instance:
Tesla has the highest average daily trading value(2.3-2.4 trillion/month USD trading value in 2021)in anytime frame during the past year followed by Apple (1.2-1.3 trillion USD/month trading value in 2021).
Surprisingly these two companies have the worst performance among 87 companies with over 100 billion dollar market cap!
If you are ranking companies with over 100 Billion dollars market cap based on their performance in 2021:
Tesla with -14.3% ranked 87 out 87 companies with over 100 billion dollar market cap..!
Apple with -4.36% ranked 81out 87 companies with over 100 billion dollar market cap..!
The question is why this happened to companies with the highest daily trading value?
The answer could be :
The market is in the profit booking stage since February 2021! And this is the last stage before the deflationary phase..!
You can not say new investors bring money into these stocks and at the very same time prices went down!
What do you think could be the reason?
Moshkelgosha