US stock market has been fighting an uphill battle due to COVID-19....
After making new all time highs as recently as 4 trading days ago in Nasdaq, things are not looking well.....
Nasdaq made new all time highs 4 trading days ago because US economy was all set to make a gradual recovery.......
Thanks to lack of leadership @ the highest level in USA and many other politicians, COVID-19 is an issue again.....
Encouraging & conducting mass rally was the last thing you expected when infection was not contained......
That may have decided the next US election as most educated and silent majority are horrified @ lack of seriousness in dealing with deadliest of virus this world has ever seen, which has engulfed every country on this planet....
Unless we see a major reduction in infection, US markets are ready to take support out in Russell 2000 S&P 500 & DOW......
Nasdaq & SOX who are showing golden cross may survive breaching 50 DMA....that is the hope to save total rout......
Based on the above scenario, it may be wise to reduce exposure until we see Nasdaq & SOX held their support.....
Sometimes it gets uglier than expected, so be prepared to trim / lock profit to be on the safe side.
IF things go better than expected, then you can buy back / increase exposure.....
Good luck with your own thesis and comfort level.
BLOG does NOT give buy or sell.
Saleem
12 comments:
Hi Saleem,
I agree with your assessment. Thu and Fri last week, the trading showed the next wave to come.
Last Week (+3.47%)
Winners : ALT OVID PS NVAX LVGO HEPA
Laggards: KRA DKNG CATS VIR ELY CGC
Holdings: APTX LVGO OVID KRA DKNG PSNL BLPH CATS VIR GAN ELY OPK HEPA CLVS BHVN PS ALT CGC
Paramjeet
Hi Paramjeet & Stocktrader,
Last week Down 13.02%
YTD UP 28.73%
Saleem
Hi guys,
Last week: -3.52% (YTD: +32.71%)
Notable Winners: AKAM ADPT LITE PSNL
Notable Losers: GAN CGC NXPI PLAN PINS RUN ELY
It was a tough week as many stocks underwent profit taking as COVID cases surged in some larger re-opened states. I only made one transactional swap for the week - my lowest total in months as I settle into longer term plays. All things considered, I think the decline in markets was not too bad, and probably bodes well for a continued move higher as we digest the news. I have rarely seen a lower bullish percent in the AAII sentiment survey, and am therefore optimistic that there's plenty of short term cash available for deployment.
Holdings: DDOG PINS AKAM ADPT NXPI ELY LOW WEN BHVN LITE GAN PLAN RUN PSNL CGC, cash 0.0%
Stocktrader
Hi guys,
Sold PSNL @ 12.98
I already have ADPT in a similar area, so I'm selling this one to free up cash for more long term ideas. I worry PSNL will have to raise cash again soon.
Stocktrader
Hi Stocktrader,
Added 15% SU @ $16.74
Saleem
Hi guys,
Bought SQ @ 103.69
I shouldn't have sold this recently, but this is my "financial" stock in the portfolio.
Stocktrader
Hi Saleem and Stocktrader,
Good luck with your new positions today.
Sold CLVS @ 6.99
Sold CGC @ 15.98
Sold BHVN @ 70
Bought NVAX @ 79.40 --> Upgraded today (target $106) and still has juice left.
Added DKNG @ 32.70
Paramjeet
Hi Paramjeet,
Good luck with NVAX
Saleem
Hi Stocktrader & Paramjeet,
Added 70% APA @ $13.35
Saleem
Hi guys,
Paramjeet - making big money in NVAX again!
Saleem - good luck with more SU and APA!
Stocktrader
Hi Guys,
Continuing with cash generation thesis before the end of June-
Sold PSNL @ 12.71 - Thanks Stocktrader for your comments earlier on Personalis.
Sold PS @ 17.08
Bought $TZA at 21.90 -> Fed stimulus holding up liquidity drying up Week over Week. Economic fundamentals could sink in July and could drag indices down. The thesis could back-fire too.. taking chance here.
After Hours HEPA reported positive advancement in clinical study of CRV431. Stock up 25%.
Paramjeet
Hi Paramjeet,
Good luck with TZA.....
Saleem
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