Sunday, May 17, 2020

Chinese trade retaliation could impact negatively....

We are back to agenda driven trade rhetoric which may have serious affect in US stock market...

USA is always the leader to initiate trade strategy which is most untimely.....

US economy is in lock down and the last thing we need a new & improved version of restarting a trade war with China...

China is almost back to normal operation in most areas, even airlines are 60% of their volume...US airlines skeptics should take notice of this fact.....it is not fiction.....

China is all set with their own retaliation against key US companies like Boeing, Qualcomm & Apple.....not a very pretty picture for Navarro & the gang.....

Back to US stock market.....

We were doing more than fine fine until........less said the better.....

S&P 500 above 50 DMA

Russell 200 above 50 DMA

DOW above 50 DMA

SOX above 50 & 200 DMA

Nasdaq above 50 & 200 DMA

Many stocks have been testing support and then making new highs which is a sign that this market is on very healthy ground

Indices are also testing support and holding it and moving UP from there.

We all have our favorite stocks and are trading based on our own knowledge of their trading pattern...

Market may react to tit for tat trade strategies......but that may be another buying opportunity...

So take a deep breath and ignore all the macho talk on trade, there is life beyond rhetoric...

Good luck with your own interpretation of trade war and its impact.

BLOG does NOT give buy or sell.

Saleem

20 comments:

psrajpal said...

Hi Saleem,

Last week up 16.71%
Winners include NVAX ALT OPK ONEM CLVS LVGO ELF...

Losers include BLPH VIR CATS KRA HCAT....

I plan to trim holdings this week particularly the overbought stocks.

Thanks

Paramjeet

stocktrader_1996 said...

Hi Saleem,

Last week: -3.12% (YTD: +11.68%)
Notable Winners: HUYA AVYA DKNG CHGG
Notable Losers: KRA NXPI LITE PINS UPS

In a profit taking week for the market, my portfolio got hit hard by semiconductor exposure and other cyclical exposure. Some opportunistic buys helped offset somewhat, but major laggards with large losses really weighed. The portfolio continues to outperform the indices on a YTD basis, so I look to continue rotating into winners as they present opportunity. Interestingly, my longest held position currently is HUYA (~1.5 months), which finally had a nice week.

Holdings: HUYA ELY PINS AVYA AKAM WDC SQ WEN UPS NXPI KRA LITE HUBS, cash 0.0%

Stocktrader

Stocks100 said...


Hi Stocktrader & Paramjeet,

Last week Down 8.02%

YTD Loss 6.91%

Great job Paramjeet$$$$$$

Saleem

psrajpal said...

Hi Saleem and Stocktrader,

Sold ONEM @34.40 to book profits.
Reduced exposure on PS and LVGO
Added 25% more CLVS @9.60

Thanks

Paramjeet

Stocks100 said...


Hi Stocktrader & Paramjeet,

After 28 years indulged in area I have avoided

Bought SRNE # $9.20.....

Paramjeet..Good luck with more CLVS

Saleem

psrajpal said...

I added SRNE too at 8.33. It went up too fast. Cooling off a bit now.

Thanks

Paramjeet

Stocks100 said...


Hi Paramjeet,

Good luck with more SRNE.....

What is your take on SRNE prospects....

Saleem

psrajpal said...

Hi Saleem,

SRNE fundamentals are still questionable. However Sorrento experimental antibody (STI-1499) has generated lot of interest and investors want a piece of it. This stock has more inclination to go higher than lower.

Check NVAX, VIR, ALT (I hold them from low levels) are up 200-300% after they disclosed participation in COVID-19 therapeutics or vaccine.

I would play these stocks safe and get out after they rise to the level of comfort. And get in when they slide down (atleast for the next 2-3 months)

Thanks

Paramjeet

Stocks100 said...


Hi Paramjeet,

Thanks for your take on SRNE and others....

What is your exit point for SRNE....

Saleem

psrajpal said...

Hi Saleem,

I plan to keep SRNE for the next burst cycle (25-30% or more rise from current levels).

There is some profit happening at the moment which will switch gears this afternoon as new buyers will come in.

Thanks

Paramjeet

stocktrader_1996 said...

Hi guys,

Good luck with SRNE and other moves!

This might be a "value" week with high fliers cooling off.

Stocktrader

stocktrader_1996 said...

Hi Paramjeet,

Are you tempted to take profits in AVYA here?

Stocktrader

stocktrader_1996 said...

Hi Saleem,

Sold AVYA @ 13.77 to take profits
Sold WDC @ 41.44 to take profits

I wanted to raise some cash for what might be great opportunities this week in high growth tech stocks (if they sell off). I sold AVYA because of the great run and bumping up into eve the new price targets after earnings. I sold WDC as this commoditized player continues to lag even on good days.

Stocktrader

psrajpal said...

Hi Stocktrader,

AVYA is not too far from a 52 week high (14.59). Typically, the tendency for selloff/downside movement is expected after the stock moves beyond 52 week. I plan to hold this for a while and expect this to reach 15+ in few sessions. Will see if this theory holds true.

I did sell 30% though to preserve profits.

Thanks

Paramjeet

Stocks100 said...


Hi Stocktrader & Paramjeet,

Nice to book full or partial profit.....

Good luck with proceed!

Saleem

stocktrader_1996 said...

Hi Saleem,

Bought ELF @ 14.85 to try and get more "going out" exposure

I will probably sell this before earnings later this week.

Stocktrader

psrajpal said...

Hi Saleem,

Sold NVAX @ 57.70 to book profits
Sold BLPH @ 15.11 due to AH secondary announcement.
Trimmed VIR @ 40 and AVYA @ 13.89
Added more SRNE @ 6.21

Keeping 30% cash for new positions later this week.

Thanks

Paramjeet

Stocks100 said...

Hi Stocktrader & Paramjeet,

Sold JD @ $55.25

Brought TLRY @ $7.95 seconds before close.

Good luck with ELF & more SRNE.

SALEEM

stocktrader_1996 said...

Hi Saleem/Paramjeet,

Ugh, I didn't realize AVYA was going to be on Mad Money. I was out of the house for the first three hours of the trading session to do the final walk-through on our new home purchase. If I'd known, I would have waited to sell until closer to close, if not tomorrow - oh well...

Stocktrader

Stocks100 said...


Hi Stocktrader,

Now you have to makeup for this lost opportunity.....

Good luck on " turnaround Tuesday "

Saleem