[US Stocks] The market continues to heat up
Hello, I am Leeman (@Lehman1980).
I am writing this article for record as my held stocks have turned positive for the second week in a row.
The NY market continued to move higher from a rotation-driven base.
Following last week’s trend, small-cap and old economy stocks
rose even more strongly this week.
Additionally, the S&P 500 rose from 3,045 to 3,193 points.
At the start of the week there was a battle around 3,000 points, but by week’s end it rose nearly 5% more easily.
＜S&P 500 Index Close＞
https://jp.investing.com/indices/us-spx--500-historical-data
Financials, energy, and materials sectors rose this week. (Source: FINVIZ)
This is the SBI Securities account summary. (Close price on June 5)
Finally turned positive.
Current unrealized gains are as follows, and cumulative results including realized losses and dividends show a$4,100 loss.
Holdings are about $50,000, and available cash is about $20,000. Due to a yen weakness trend, I don’t expect to convert to dollars for a while.
Trades
Buy: VT, RDSB, SPXS
oil prices continued to rise, so I bought RDSB in two installments.
The purchase price dropped about $10, resulting in a 16% loss (as of the previous week’s end, the loss was 42%).
Also, this week I started buying SPXS as a hedge.
Honestly, I didn’t expect such a sharp rally on Friday, so
in hindsight my entry was early, but since I still hold only 100 shares, the loss isn’t large in terms of amount.
Because it is a leverage ETF, it isn’t suitable for long-term holding even as a physical position, so
I plan to monitor and increase gradually.
Regarding SPXS, there is a timely article from Motley Fool that I will quote.
Let the straw hat come in winter! How should SPXL and SPXS be considered as risk hedges?
https://www.motleyfool.co.jp/archives/9050
Motley Fool features contributions from people I interact with on Twitter, which I think offer useful perspectives on investing.
osechi-cheese
https://www.motleyfool.co.jp/archives/author/osechizu
Linasu at US Stock Mask
https://www.motleyfool.co.jp/archives/author/linus
Kishiyan
https://www.motleyfool.co.jp/archives/author/kishiyan
Summary
We can’t tell how long this mini-bubble will last, but it was another week with stronger risk-on sentiment.
I think we should continue to anticipate possible sharp declines and review trading policies accordingly.
Currently, I am narrowing to three individual stocks and plan to halt further buying.
I plan to buy more VT and SPXS.
Stock prices are back to being expensive.
The S&P 500 has recovered to 3,200 points.
Rather than aiming for 3,400 points, it seems more likely to head toward 2,600 points, but
given the ongoing decline in the relative value of cash, it’s unclear in the short term which direction it will take.
