Proflex Market Update - Wk 23
Dear Subscribers,
The market took a pause last week, with tech stocks experiencing a correction. As we highlighted at the start of the week, we were cautious due to the poor market breadth and took steps to hedge some of our positions before the correction.
Early in the week, disappointing US treasury auctions accelerated the downturn. However, we do not expect this correction to be deep, as QT tapering is set to begin soon, providing support to US treasuries. Additionally, continuous government spending acts as a form of stimulus, preventing slowdown in the economy.
Tech stock action and late recovery:
Last week, tech stocks corrected significantly, aligning with our cautious outlook. We observed weak market breadth, which signaled potential volatility.
In addition to mega-cap correction which led to index correction, Tier 2 tech companies like Salesforce (CRM), Palo Alto Networks (PANW), and MongoDB (MDB) saw significant declines post-earnings, while companies like Zscaler (ZS) showed positive reaction post-earnings.
Despite the correction, some buying resumed towards the end of the week in beaten-down tech stocks which shows appetite for "buying on dip" which has been the trend through this bull cycle. Crypto Market: Bitcoin faced a correction after President Biden vetoed a critical crypto bill with bipartisan support. Initially, there was hope for positive moves from the Biden administration due to pressure from the crypto lobby and Trump’s favorable stance on crypto. There was However, following Trump’s conviction in the hush money trial, the Biden administration doubled down on its anti-crypto stance and decided to veto SAB121 bill.
Despite this, Bitcoin found strong support around the $67k mark and is looking to break out to new highs. There was some movement of Bitcoin from Mt. Gox wallets which created some panic. But we believe market has ability to absorb any such outflows without major price correction. Free Weekly Insights
Get This Analysis Every WeekJoin 250+ investors at Google, Amazon & Apple who start their week with Proflex. No spam. Unsubscribe anytime. Precious Metals: Gold and silver continue to consolidate in a higher range. We have leveraged this rally effectively within our Growth Gazette portfolio and remain positive on the sector, anticipating further profits. Outlook and Strategy: While the recent market correction has led to some volatility, our strategic hedging has mitigated losses and also added significant margin to our portfolio. We remain cautiously optimistic, watching key indicators like the impact of QT tapering and government spending. Our diversified portfolio and proactive approach ensure we are well-positioned to navigate these market conditions and capitalize on emerging opportunities for our All-Access subscribers. Proflex All-Access: Your Market Compass Dive deep into the financial markets with Proflex All-Access, your ultimate tool for enhanced market understanding and active engagement. This premium service provides subscribers with exclusive insights and actionable investment advice, giving you a significant advantage in various market conditions. With Proflex All-Access, you receive detailed analyses and recommendations specifically curated to optimize your investment strategy. Our suite of specialized newsletters includes:
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Thank you for your continued trust and engagement. We will keep you updated on further developments and our strategic adjustments. Feel free to send us your queries at proflex@proflexfinance.com Best regards, Raman Bindlish Editor-in-Chief, Proflex Finance ProFlex® by Proflex Finance Legal Disclosures ProFlex® by Proflex Finance, the premium newsletter product series, provides informational and educational content only and does not offer personalized investment advice or establish a fiduciary relationship. While we rely on reliable sources and research, the information is not tailored to individual financial situations. Readers are urged to consult qualified financial professionals before making investment decisions. We do not guarantee the accuracy, completeness, or timeliness of the information and are not responsible for any investment decisions based on this newsletter. Investing carries risks, and past performance doesn't predict future results. By accessing this newsletter, you acknowledge that we are not liable for actions or decisions resulting from its content. Please conduct due diligence and seek professional advice as needed. |
