RE: CHART ANALYSIS12 Mar 2021 12:06
FWIW certain sectors are on a sustainable recovery and whilst not achieving pre covid levels of demand for a long while, these sectors will continue to move higher.
I am already repositioning and sitting with around 40% cash. A cyclical recovery is set to continue, with or without a flash crash. Although post any crash would make an better entry point.
Oils, oil service sector, any recovery will benefit as long as the supply increases are controlled to maintain price around $75. I expect blowout earnings in Q1. In turn that will benefit the oil services as capital becomes available.
Travel, hospitality sector, on a roll and plenty of buyable dips along the way. Does anyone believe this sector will not open up again, that people will not scramble and overpay for a holiday, that a glimpse of sunshine will not get everyone out?
People are gagging to be released.
Services sectors will roar, advertising etc
Pharma will be much higher too.
Covid cannot be used to contain everyone indefinitely. The political covid - another strain warnings - no longer work.
Sun, sand, sea and Summer :) will test whether the vaccine works and whether any rise is acceptable given the % of the population vaccinated (increasing daily).
BUT Look out below if the vaccines are pulled as ineffective. Who knows if that will be suggested as part of the plan? Nothing surprises me any more.
The rallies could happen from lower levels follwoing a correction which, for all is a much much healthier than throwing money at stocks with all time highs.
Don't forget, funds are brimming with cash and they will not mind throwing other people's money in for returns as long as they get their fees.
Bond rates increases improve bank sector margins, inflation (should) boost materials & metals stocks
After the next correction DOW 40K S&P 5k - is on the agenda. The FTSE will of course increase only modestly :)
Stay safe and good luck all.
DYOR