Trade war between US & rest of the world is taking a toll in traders / investors psyche. Most indices / sectors are feeling the pressure of trade uncertainty and its future impact on pricing / profitability.
Here is how RSI is looking after many weeks of " tweet war "
GLD 30.72
FXI 33.05
TAN 42.42
DOW 43.21
SOX 44.16
XLE 50.02
S&P 500 52.74
Nasdaq 60.63
RUT 62.91
As you can clearly see that trade war is taking a huge toll on most index. Only Nasdaq and Russell 2000 are still healthy.
NOW...the question is, what happens in this week ?
Based on 24/7 tweets and rhetoric, it is not going to be any better.
Most rallies will be sold off.
The only way to trade is not only " daytrade " but to sell on minor profit or risk losing profit plus further losses.
Maximum we have a window for swing trading, means buy today and maybe sell by end of next day.
Strong stocks took a huge hit last week losing about 25% of their gains.....
Chinese small cap are the latest victim of " price adjustment "
To say the least, profile of this market changed for the worse last week.
Can we have a sustained recovery in prices ?
That question will be answered by end of coming week....stay tuned!
Good luck with your own analysis and comfort level.
BLOG does NOT give buy or sell.
Saleem
6 comments:
Hi Saleem,
Sold EAF @ 18.19
Sorry I haven't written up my general portfolio situation yet--it's been a busy morning! :)
Stocktrader
Hi Stocktrader,
Good luck with next pick / strategy.
Dont worry...mine was a super lousy week anyway....
Saleem
Hi Saleem,
Bought AVLR @ 49.80
The recent state tax collection changes benefit this new company so much it is impossible to ignore. I'll give this investment a try with total market cap seeming reasonable still and now-accelerating business and potential takeover options.
Stocktrader
Hi Stocktrader,
Good luck with AVLR...
Saleem
Hi Saleem,
Last week:
Performance: -2.41% (YTD: +38.55%) (Note: I am -4.3% so far today)
Notable Winners: TRIL BOOM BEAT IOVA PLT
Notable Losers: HUYA EAF SPLK VCEL MOMO PANW BABA
It was a nasty week for the high growth stocks as we know. This is pretty normal in a "bull market" where corrections are short and steep (continuing today). On the other hand, the rest of the market fell slowly/moderately for 8 straight days at one point. This is more indicative of a "bear market" where stocks drip down consistently with a few short, sharp short-covering rallies. To this end, I think the gains to be made going forward will primarily be in the high growth stocks, regardless of the selloff continuing today. I think it represents a buying opportunity as world growth slows either due to tariffs or just cycle peaks in most sectors.
Current Holdings (after today's moves): BEAT KIDS IART MU PANW SPLK IOVA PYPL PLT MOMO BABA COHU GSKY APPN VICR AVLR IQ VCEL HUYA TRIL, cash 0.0%
Stocktrader
Hi Stocktrader,
Last week loss 22.98%
YTD loss 28.63%
Saleem
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