Charts of my over-valued growth stocks, which are grouped in league with others like CRM, OKTA, DDOG, etc… These were among the best ‘COVID stocks’ (enabling remote communication and commerce) that we used earlier in the year.
After buying the items below back on the recent corrections I am much more diversified in holdings now due mainly to said valuations. The acute COVID-19 phase was one thing, but portfolio management is another.
Docusign has held the SMA 50, RSI is positive and MACD is postured to turn up.
Zoom has been a beast since I bought it at the bottom of the big bull flag pullback in early September. Sure, there’s negative RSI divergence and a precarious MACD. That’s what momo will do when it starts to wane.
Zscaler is turning up nicely after a hold of the SMA 50. RSI and MACD are both positive.
Chewy is holding trend nicely after it was bought on the big drop back to said trend (SMA 50).
Just added today, and pending its ability to hold the moving averages and change the trend, Smartsheet is technically neutral.
I know, I know… “he’s a bubble head!”. Nah, it’s an aspect of the portfolio. Aspect, n: a particular part or feature of something.
But I do not agree with the bears all over Twitter espousing dogma about the over-valued stock market and wildly valued sub-segments like this. They are great companies, growing for a reason. But as to the stock market, the average bear simply does not give weight to the fact that central banks are antagonizing currencies in order to give the impression of prosperity through asset price appreciation. Equities are assets, and many companies behind them are of value. There are more moving parts than a simple equation like ‘a high P/E, P/S or lack of profits means over valued!’.
Yes, it’s over valued. But think of the value of the denominating currency. It can be printed at will.
Also, it appears that Growth vs. Value (IGX/IVX) and Tech vs. broad SPX have held trend.
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