As we are waiting for futures to open, bigger news could be how CHINA will retaliate.
US CHINA trade dispute has gone well beyond the scope of phase 1.
It is about " unrest and foreign intervention or support of Hong Kong dissidents "
US UK CANADA and other countries are giving active support to dissidents plus are making policy decisions to support any exit from Hong Kong.
UK has widened the eligibility requirement to give residency in UK to include most of Hong Kong residents...
Based on all these recent developments, it must not surprise anyone IF there is " retaliatory policies from CHINA "
How wall street will react depends on Hong Kong / Shanghai reaction overnight...
Last time there was no reaction when we opened......hoping that will be the case this time around.
Back to US markets, here is the RSI read :
Nasdaq 65.01
S&P 500 63.54
DOW 62.03
IWM 60.75
SOX 59.66
XLE 55.60
IF we analyze above numbers, it is easy to see that all 3 major indices are in " overbought territory "
SOX & Russell 2000 also in overbought area
This may suggest any negative headline about COVID-19 or CHINA may impact markets.....so keep an eye on news flow / tweets....
XLE has under performed despite major improvement in crude prices, sometimes there is a lag in crude prices and stocks......
It is highly suggested that gains needs to be booked quickly....
Rotation will play a key role in getting better results based on overbought / oversold sectors.
Message of the market has been very clear so far, things may not be as bad as feared......
Normal rotations and pullbacks still to be in play going forward.
Good luck with your own thesis and comfort level with this TAPE.
BLOG does NOT give buy or sell.
Saleem
7 comments:
Hi Guys,
Happy June-20 to all.
May saw my portfolio grow by 40.67%, the best month on record so far.
Big winners included NVAX ALT VIR LVGO BHVN OPK ONEM KRA PS ELY ELF and more..
Some laggards includes HCAT CATS HEPA CNX etc.
Sector rotation to value stocks is most likely the theme this month per analyst notes. I will reevaluate the distribution based upon the changing dyanamics.
Sold LVGO @58.91 and moved to OPK @ 2.43
Thanks
Paramjeet
Hi guys,
Last week: +5.10% (YTD: +27.07%)
Notable Winners: KRA DDOG PINS LOW BHVN AKAM
Notable Losers: AVYA
The market kept moving and the opportunistic mid-week buys in my favorite tech stocks helped propel gains and bring the portfolio more balance. I think the loose monetary policy coupled with fiscal stimulus should continue to provide for multiple expansion even as many investors think the rally has come too far.
Holdings: PINS DDOG AKAM SAIL LOW WEN SQ ELY PLAN HUBS VICR AVYA SEDG BHVN PSNL, cash 0.0%
Stocktrader
Hi Paramjeet,
Huge month - wow!
Good luck with new positioning!
Stocktrader
Hi Stocktrader & Paramjeet,
Last week UP 4.74%
YTD UP 5.01%
Good selection of stocks Paramjeet$$$$
Saleem
Thank you Saleem. The current holdings are
Sector : Holdings
Materials: KRA
Industrials: VICR
Consumer Discretionary: ELY XELB
Healthcare: ACOR ALT BLPH CATS CLVS HEPA NVAX ONEM OPK VIR VSTM
Information Technology: AVYA DDOG PS
Cash: 5%
Energy, Materials, Travel/Leisure sectors are missing with I need to fill in this month.
Thanks
Paramjeet
Hi guys,
CRWD is my favorite security play but it feels like there's too much combined market cap and competition in the sector. That said, someone bought a chunk of Sep 150 calls today capturing a few earnings reports including tomorrow, wow.
Stocktrader
Hi Stocktrader,
Nice monitoring and observation..thanks for sharing!
Saleem
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