Weekly Market Update #3
3 min read

Weekly Market Update #3

Weekly Market Update #3

The Weekly Market Update's goal is to give you some insights on the stock market, some visibility on my portfolio, and how I make decisions.

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Markets

Past performance and financial indicators (MACD, RSI) of different markets and indexes

Tough week. Every index that I track (but Bitcoin) took a loss. Financials indicators (MACD and RSI) are pessimistic: it is likely to continue.

Graph of the week

The past week annihilated any positive return that happened in January for the U.S. and European markets:

How much money you would have over time if you invested $10k in each index on January 4th 2021

Chinese tech stocks (CQQQ that we started to track last week) and China in general were the most resilient.

Portfolio update

Comparing the growth of my portfolio (green) in January

My portfolio performed well compared to:

  • The S&P500 and the NASDAQ100 (QQQ)
  • The 60/40 portfolio (60% stocks, 40% bonds)
  • Ray Dalio's All Weather Portfolio

Why?

  • I have a large exposure to tech (QQQ but also CQQQ, ARKK and individual stocks). Tech is over-performing the market (for example QQQ > S&P500 for the U.S. market)
  • I am gradually increasing my exposure to the Chinese market which is starting to take-off compared to the U.S. market.
  • I own Bitcoin.

I closed some positions last week:

Positions I closed in the past 7 days
  • I was an opportunist on BNGO and NNDM, I opened and closed the trades in the same week
  • I reduced my position on Unity (I still hold some).
  • I opened (and closed) a position on VXX. VXX allows for edging against volatility.

What I am reading

Big Ideas 2021: Innovation Research by ARK Invest
Big Ideas 2021, is ARK’s annual research publication seeking to highlight the latest research and developments in innovation.
We Have Entered the Climate Decade
As we finally put 2020 into hindsight, the road ahead is uncertain. On the one hand, stock markets continue to thrive, and the economy feels poised to come roaring back, fueled by a population…
Why It’s Usually Crazier Than You Expect
I want to try to explain why Gamestop went up 100-fold in the last year and why Sears never recovered. They have to do with the same force in opposite directions. It’s a force that can explain a lot of baffling trends lately, and it’s so easy to underestimate and overlook. First, a story about why s…
For Better of For Worse, This is a Young Person’s Market Right Now
The Gamestop story is endlessly fascinating for a number of reasons.There are elements of a mania in the daily price moves.It shows certain day traders are becoming more coordinated in how

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