Chinese economy is hurting due to Corona Virus.
More cities are being closed down to prevent spread of this virus
Now it is turn of Industrial cities of CHINA to be locked down, this can have major impact not only on Chinese economy but worldwide.
US stock markets have been making series of all time highs while Corona Virus is impacting more and more people and Chinese cities.
US celebration of all time highs can come to screeching halt and may head south in a hurry.
Here is a look @ RSI of major part of US market :
Nasdaq 64.91
S&P 500 59.52
DOW 55.62
SOX 49.99
IWM 49.57
Test of 50 DMA already happening in RUSSELL 2000 where it is sitting @ 50 DMA, SOX is barely above 50 DMA.
Nasdaq, Dow & S&P 500 are further above 50 DMA and may have to join in testing support or penetrate 50 DMA.
Chinese economic impact is more than alarming, thus needs reset.
IT IS important to look beyond comfort zone of USA to get an accurate handle on impact of this virus where death toll have surpassed SARS already as we are in 800++ zone.
As long as as you are taking risk knowingly, that chance of going down have risen considerably in last 72 hours, there will be no surprise.
Good luck with your own analysis and comfort level.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hi Saleem,
Last week: +4.05% (YTD: +5.83%)
Notable Winners: IQ HUYA PTON BABA LYFT PLAN
Notable Losers: CSOD
It was a rebound week for the markets and the portfolio with China-exposed stocks taking the lead despite worsening coronavirus statistics. So far this year, there's been an underlying bid to stocks even when times look tough. This is mostly attributable to ample liquidity provided by the Fed, and then also the Chinese central bank this past week. Big spikes in story stocks like TSLA are prime examples of this effect. It is important to monitor these conditions for any changes, but so far it looks like the liquidity party will continue.
Holdings: DDOG AVGO LYFT PS PLAN CSOD IBP LITE ADPT IQ, cash 0.0%
Stocktrader
Hi Stocktrader,
Last week Down .85%
YTD Down 18.35%
Saleem
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