Indices may be under severe pressure on Increasing death and hospitalization due to Corona virus. Many countries are reporting patients Canada, Australia, Nepal, plus 4 in USA......
China reporting increasing number of death and patients on an hourly basis, so far fatalities are confined in China.
There is a very good chance that by close, we may see stabilization in US markets.....off the lows is my hope....
My optimism for better close is based on RSI projection which is already heading 48 in Russell 2000 others may get there intraday.
Here is RSI reading as of Friday's close :
IWM 48.88
DOW 57.85
S&P 500 61.57
SOX 63.99
Nasdaq 67.27
When our indices hit 50's in RSI I am hoping for stabilization.....
This is the week of earnings when all famous technology companies reports, most may have strong earnings.....
By tomorrow PM most stocks may have given up their super sized gains.....thus better tone after earnings.
Do not overreact to news flow, it may be discounted in a hurry.....
Having a diversified portfolio always helps....
Chinese stocks are impacted by 11 city shutdown and curb on New Year travel and celebration....
Have some low RSI stocks in your portfolio, that may dent less than extended stocks.....
Good luck with your own understanding of this crisis and your own comfort level.
BLOG does NOT give buy or sell.
Saleem
4 comments:
Hi Saleem,
Last week: -3.22% (YTD: +2.69%)
Notable Winners: IBP PLAN DDOG
Notable Losers: MOMO HUYA BABA BHVN CSOD
My Chinese exposure crushed the portfolio this week as the coronavirus spread. MOMO, with its Chinese dating app, was -19.42% and represents the biggest single mistake I've made in a while as I could have sold early in the week for much less loss, and it was pretty obvious that dating would slow significantly. At this point, I think the coronavirus is not highly contagious nor lethal, so I expect the effects on the market to fade soon. I am generally pleased with my exposure, at least with respect to domestic stocks, but may make some minor adjustments in the Chinese ones.
Portfolio: IBP AVGO DDOG PS CSOD PLAN BABA LK HUYA MOMO, cash 0.0%
Stocktrader
Hi Saleem,
Sold MOMO @ 29.91
Looking to buy IQ.
Stocktrader
Hi Saleem,
Bought IQ @ 21.40
With movie theaters closed everywhere, and people staying home for health scare reasons, I think this stock could accelerate higher.
Stocktrader
Hi stocktrader,
Sorry missed whole day slump, was @ eye surgeon for my wife upcoming Cataract surgery.
Good luck with IQ.....good idea$$$$$
Last week Down 9.88%
YTD Down 5.62%
Saleem
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