Stock market has been outperforming since October.....
There has been one pullback to support in January....
Corona Virus related pullback is only 2 days old.....
The question which everyone is struggling with, is this the start of much needed pullback / correction.
Many pundits / technicians have weighed in with mixed conclusions....
Some always go with the flow ...IF negative yesterday...then they warn you to be careful....
BUT IF we rally next day......drum roll for happy days are here.....
I personally believe that TAPE is trying to discount Corona Virus impact to world economies....
My personal take is ....things are getting back to normal in China which took two weeks further into their new year....how do i know..... had ordered couple of electronics items from AliExpress, one has been delivered in Canada and other one is shipped.....
We may have been caught with overreaction to Japan situation, with 20/20 hindsight, it could have been handled differently instead of being holed up inside ship.
Gold may have played its hand already and may need well deserved rest.
When I am looking @ RSI following picture emerges :
SOX 48.73
DOW 48.92
IWM 52.70
S&P 500 53.66
Nasdaq 55.92
SLV 63.83
GLD 78.99
SOX and DOW are looking oversold, except for Silver & Gold everything has pulled back.
Strongest stocks can be bought on 5% to 10% pullback which has occurred already....
Taking a position with conviction can be rewarding @ this stage.
AMD, MU, ROKU, BYND, LYFT has good risk / reward ratio.
Good luck with your own analysis & comfort level.
BLOG does NOT give buy or sell.
Saleem
6 comments:
Hi Saleem,
Last week: -2.48% (YTD: +3.29%)
Notable Winners: IBP PS
Notable Losers: EHTH AVLR PLAN LITE AVGO IQ
It was a tough week for the portfolio as fears hit hard late in the week (and continue to spill over today). There's not much to do when the market is falling this precipitously, so we wait for stabilization to make moves if necessary. I think it is encouraging that China's new virus numbers are decreasing, which tells us the virus can run its course over a few months. I hope the market takes comfort from this fact eventually, even if the world starts to see more new cases.
Holdings: AVGO AGCO AVLR PLAN IBP CSOD DDOG EHTH IQ PS, cash 0.0%
Stocktrader
Hi Stocktrader,
Last week down 1.74%
YTD Down 11.86%
Saleem
Hi Saleem,
Sold IQ @ 23.78
Bought LYFT @ 41.90
It appears the coronavirus is peaking in China, so I worry about how the "virus plays" like IQ will fare in coming days/weeks, even if they had great business prospects during that time.
I like LYFT here because it is down so much from its recent peak, and it seems the ride-sharing companies are becoming more rational on prices.
Stocktrader
Hi Stocktrader,
Good luck with LYFT....
Saleem
Hi Stocktrader,
Sold QCOM @ $83.06
Bought IQ @ $23.78
Saleem
Hi Saleem,
Good luck with the swap!
Stocktrader
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