We have had a great start of 2019. We all lost confidence back in October when we got a deep correction ending just before Christmas 2018.
The market is all about structures. Before Christmas last year it was a traditonal situation if we got a Santa Rally or not. The first sign of the big Bounce started. The best traders went long as the Santa Rally commenced.
As we entered the New Year it was all about a New market structure. The New Year’s rally or the January effect as some refer it to. As I have suggested earlier it is all about jumping on the Train as the Train leaves the station. When you see a rally start jump on, of course With a stop loss.
With the Great jobs numbers January the market was set for a big rally.
What we have experienced in the market the last 6 months a traditional correction With a Sharp Bounce structure. I know some of you would say I Express my views With to much certainty. My point is there is a lot of good trades to be made in traditonal market structures like the New Year’s rally.
What about Our market performers and their 2019 performance. I have to start With the Streaming TV co Roku and Thursday’s blockbuster earnings.
While the market leader Netflix have been one of the big S&P 500 gainers the smaller ROKU has been among the overall market big performers.
Why did ROKU skyrocket as one of the US winners now Friday. I have told you before it is all about potential, potential and potential. As the TV market moves more and more into modern streaming solutions Companies like Netflix and Roku will Excel.
I do not know of the streaming TV’s market share all but it is small. The big potential for streaming is to increase market share. This is a story we know from other businesses. Amazon is a great example of a Company taking market share With New ways in an old fashioned traditional market.
Hope some of you have followed my ROKU tweets this year gone long and doubled Your Money. We all like Our Stocks on the US winners list.
I have written several blogs on Semiconductor Stocks so I am happy to see AMD as the best S&P 500 the last year. In my world Semiconductor Stocks cyclical and benefitting from the ten year long bull market.
As I see it the Semiconductors business is growing. The first sign of the use of artificial intelligence and use perhaps in self driving cars and smart houses a big potential for the industry.
AMD which have started their fight With their rivals Intel and Nvidia in their monopoly markets will be a real market performer if its strategy succesful. AMD’s market performance is a sign of the market believing in its New strategy.
Now we all have to look for New triggers in the market. If we look at the chart I started With the Bounce has a certain deep correction and Sharp Bounce structure.
We must not now not forget to look forward at New macro events. As I have told you before bull markets With a big positive correlation With good macro conditions. As I see it you must look to the coming Nonfarm payrolls and if the numbers can say something about the US GDP outlook.
Good Luck With Your Investments.