US has started a new round of tariff with China with a typical statement by Mr Trump against retaliation....almost laughable that I can impose tariff on you & hurt you but you cannot retaliate to protect your interest, same line was given to Canada but Canada is imposing retaliatory tariff after several weeks to allow cooler heads to prevail, sadly no cooler head exists in Washington.
How all this will affect stock market is neutral @ best but it can get complicated with each round of tit for tat tariff.
SO far market reaction has been tame and traders keep coming back to pick bargains, on Friday market closed @ high of the day with .10% to .34% losses.
RSI is giving us an interesting picture of where strength and weaknesses are :
Nasdaq 71.03
Russell 2000 70.49
S&P 500 62.46
SOX 62.15
DOW 56.09
XLE 43.15
TAN 34.89
GLD 33.71
As you can see that we have 2 clearly defined market, one is extremely strong with Nasdaq and Russell, S&P 500, SOX and DOW neutral, XLE, TAN & GLD in avoid category.
There is another category of Chinese $5 billion to $10 Billion market cap which is running away from IPO prices, many names to be noted BILI BZUN HUYA IQ MOMO to name a few.....
We need to recognize change in market makeup and adjust our portfolio quickly to optimize our returns.
What is working is obvious in RSI table, RSI in Chinese small caps are in 90's....so tread very carefully there, i have been doing daytrading on those position for several days.
On Friday in early pre market i made the following trades :
SOLD OLED @ $95.50
Bought HUYA @ $44.90
Bought IQ @ $41.50
Here is my portfolio weighting :
NVDA 33.60%
WB 22.60%
BZUN 15.90%
HUYA 10.90%
BILI 9.30%
IQ 7.70%
Good luck with your own strategy and comfort level.
Thanks Stocktrader & Explorer for your EID greetings, much appreciated.
BLOG does NOT give buy or sell.
Saleem
4 comments:
Hi Saleem,
Last week:
Performance: +2.93% (YTD: +41.98%)
Notable Winners: HUYA APPN KIDS PANW OKTA EAF IART
Notable Losers: TRIL VCEL VICR MPC MU
It was another week where a few stars stole the show (HUYA +32%, APPN +26%). The "new economy" small caps continue to show massive outperformance versus the market, and I don't think it ends this week either. Traditionally July has been a tougher month for the Nasdaq as the reality of earnings can't match the exuberance of the story. I look for the rest of this month to be smooth, but then reality to maybe take a bite.
Holdings: APPN HUYA SPLK BEAT BOOM MU OKTA IART PANW MOMO KIDS BABA EAF VICR COHU IOVA MPC VCEL TRIL, cash 0.0%
Stocktrader
Hi Stocktrader,
Last week down .76%
YTD loss 5.65%
Saleem
Hi Saleem,
SOLD JT. The breakout was a false positive.
BOUGHT BILI @ 19.25
Now only SOGO, BILI and WB in the portfolio.
Thanks
Paramjeet
Hi Paramjeet,
Good luck with BILI, SOGO & WB....
Saleem
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