Sunday, May 20, 2018

US Markets to rally hard on potential China trade deal....

US markets are all set to rally hard as we have an announcement of a potential framework for a trade deal with China.

Markets were bogged down with trade wars all over the globe, once China trade deal is done next could be deal with EU then NAFTA......

Here is the RSI snapshot of indices and sectors :

XLE        73.91

RUT        69.49

TAN        64.59

Nasdaq    57.76

S&P 500 56.47

Dow        55.95

SOX        54.97

As you can see with this table that XLE is clearly overbought as oil prices are @ 4 year high. RUT is getting overbought, while SOX , S&P 500, Dow and Nasdaq remains most undervalued sector.

AMAT earnings have impacted many semiconductor stocks which may have been overdone.

Most technicians are advocating buying from new 52 wk high list, i think it is a good approach IF we are going to rally hard.

This market has rewarded buying strength strategy.

NTES & BIDU have been subjected to overreaction and are ripe for major upturn.

Some stocks like WB has been beaten down since earnings and have made a nice base, support is here and its ready for a northbound turn.....

Just some of the overdone stocks, i am sure there are many who are in the same boat....

Good luck with your own analysis and comfort level.

BLOG does NOT give buy or sell.

Saleem


10 comments:

Stocks100 said...


Hi Stocktrader,

Bought a tiny position in BILI @ $13.00...more when funds available.

Saleem

stocktrader_1996 said...

Hi Saleem,

Good luck with BILI--reports on Wednesday!

Stocktrader

Stocks100 said...


Hi Stocktrader,

Interesting company BILI catering to youth of China.....

Thanks for reporting info.....

Saleem

stocktrader_1996 said...

Hi Saleem,

Last week:

Performance: +3.27% (YTD: +26.14%)
Notable Winners: HUYA BILI VCEL GTLS BOOM VICR
Notable Losers: MHO TRIL COHU BAC

It was another great week propelled by a few big winners in the Chinese IPO space. Technology and energy continue to look great, while financials are surprisingly lagging, even as rates rose and the yield curve steepened last week. Some large cap tech favorites also look short-term challenged on the charts like AMZN and NFLX--it may be something to watch, especially if rates continue to rise impacting their NPV calculations.

Holdings: BAC SPLK VICR GTLS BOOM VCEL MU APPN HUYA BEAT SWKS BABA MPC BILI COHU EAF SFLY TRIL, cash 0.0%

Stocktrader

Stocks100 said...


Hi Stocktrader,

Last week down .52%

YTD down 15.51%

Saleem

Stocks100 said...


Hi Stocktrader,

Sold EAF @ $19.42

Sold RUN @ $10.96

Saleem

stocktrader_1996 said...

Hi Saleem,

Good luck with proceeds and new picks!

Stocktrader

Stocks100 said...


Hi Stocktrader,

Added 80% BIDU @ $243.20

Saleem

Stocks100 said...


Hi Stocktrader,

Added 125% BILI @ $12.91

Saleem

stocktrader_1996 said...

Hi Saleem,

Good luck with the adds!

Stocktrader