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
Hi Saleem,
ReplyDeleteSold EAF @ 18.19
Sorry I haven't written up my general portfolio situation yet--it's been a busy morning! :)
Stocktrader
ReplyDeleteHi Stocktrader,
Good luck with next pick / strategy.
Dont worry...mine was a super lousy week anyway....
Saleem
Hi Saleem,
ReplyDeleteBought 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
ReplyDeleteHi Stocktrader,
Good luck with AVLR...
Saleem
Hi Saleem,
ReplyDeleteLast 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
ReplyDeleteHi Stocktrader,
Last week loss 22.98%
YTD loss 28.63%
Saleem