Warren Buffett losing 50 billion in this slump has eroded his confidence in this TAPE...
It just proves that even the-best investor in the world can have a bad month or even a year.....
BUT we have to be ready for his remarks and its after affects .....
Buffett does not see bargain...this may trigger selling in an overbought market......
After looking @ charts of DOW, S&P & Nasdaq......this is very obvious :
DOW ready to plunge below 50 DMA on open...its only 1.1% away...
S&P 500 may dip 2.55%
Nasdaq may dip 5.26%......
S&P 500 & Nasdaq have little room before it test or plunge below 50 DMA.....
OK what to focus on to avoid full impact on Buffett selling...
First thing first...reduce exposure....means sell @ open...
Write covered call....
Focus on sectors which are ripe to reverse......
Oil looks ready to reverse.....
Nat Gas looking better...
Casino stocks may improve....
Biotechs may have reached severe overbought conditions.....be careful there.....
Warren Buffett do carry lot of weight...so do not underestimate his feelings about this TAPE....
Good luck with your own thesis and comfort level.
BLOG does NOT give buy or sell.
Saleem
9 comments:
Hi Saleem,
Last week: +0.45% (YTD: +5.74%)
Notable Winners: CWH KRA GTLS DKNG ASH
Notable Losers: HUYA TER AMD UPS BHVN
It was a mixed week with many recent winners taking a break while some "re-opening" stocks did better. I'm not sure what the next weeks hold, but I think holding companies with positive reports and commentary should provide some safety with potential for upside.
Holdings: BHVN ASH WDC DNKG AMD AKAM KRA ELF HUYA UPS GTLS TER, cash 0.0%
Stocktrader
Hi Stocktrader,
Last week Down 1.09%
YTD Down 8.82%
Saleem
Hi Saleem,
- Bought VIR@29 today. Today's news that Vir and Alnylam have identified RNAi Therapeutic Development Candidate, VIR-2703 (ALN-COV), Targeting SARS-CoV-2 for the Treatment of COVID-19 is great. The company is funded by Softbank, Bill Gates Foundation and had recent collaboration with Biogen, Alnylam, Glaxo, Samsung Biologics and more.
- Sold HCAT@24.65 based upon the price action and uncertain growth in the coming quarters.
- Added a small position in Chart Industries GTLS@33.50 as it pulled back to a reasonable price.
Thanks
Paramjeet
Hi Paramjeet,
Good luck with VIR & GTLS....
Saleem
Hi Paramjeet,
Good luck with new positions and pruning of stale ones!
Are any of these COVID treatments expected to make profits from the drugs? I thought many of them would offer for break-even to "help humanity".
Stocktrader
Hi Saleem and Stocktrader,
Thank you for your wishes.
COVID Treatments drug discovery itself is a hugh PR. Companies (Small Cap/Mid-Cap) will be bought and/or will generate secondary businesses if they manage to discover COVID-19 drug. Yes, they will not be selling drugs at 300X over cost but certainly with volume demand, a 3X - 5X over cost price will be hugh for profitability.
Thanks
Paramjeet
Hi Paramjeet,
Solid rationale - thanks for sharing!
Stocktrader
Any thoughts on EAT and CATS.
EAT came back with solid ER, probably backed down due to profit taking.
CATS seems promising AI-powered and telehealth company recently upgraded to $35 target. Also in behavioral health segment which seem to growing in demand.
Thanks
Paramjeet
Hi Paramjeet,
I was just talking to a friend today about EAT and how that was a great report (as he was talking about CAKE which I don't think is as good). I struggle to find the right timing/price to enter these restaurant companies designed for dine-in primarily, but EAT is probably the best of that bunch. Ultimately, the big public and better capitalized chains will pick up market share from the small businesses that go bust unfortunately.
I wasn't familiar with CATS prior to your mention, but it certainly looks interesting, especially the analyst notes associated with the $35 PT. I hesitate to enter any stocks in the health insurance space during this election year, but that's probably my loss. I wonder how much capex those insurers are ready to lay out this year too, even with something as impressive as the AI problem solving that CATS offers.
I like the ideas!
Stocktrader
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