Sunday, June 21, 2020

US stock market adjusting to new normal......

US stock market is in the process of adjusting new way of conducting economic activity.

Dealing with COVID-19 has been more challenging .

New standard of operation is a new reality, balancing sales with social distancing requirements has many implications.

Law suits is most feared IF there is a breakout in any institution, associated cost of investigation and changes may challenge bottom line

No matter what the environment, from Q 3 it will be all about bottom line and top line.....

Many industries are already into Q 4 operation like cruise lines....for them Q 1 2021 will be the Q of reckoning......

While it is not all smooth sailing for any industry yet, SOX may recover the fastest.

SOX is near all time high area.....

Nasdaq also near all time high and has made a perfect golden cross...

GLD also near all time high.....

IF Nasdaq and SOX takes off then GLD has to bow down....

GLD may be most @ risk of going south.

S&P 500 also above 50 & 200 DMA

Russell 2000 & DOW below 200 DMA.....

XLE below 200 DMA and also very near 50 DMA support line....

Internals of this market is half decent, considering everything.....

CHINA & USA had a good trade meeting in Hawaii where Chinese agreed again to buy more agricultural products from USA......a possible thaw in trade relations....

COVID-19 is contained to much lower level in Canada while India is number 4th of most infected.....

This week may give us a much clearer picture IF market has factored everything about COVID-19... I have a feeling it may have discounted all the delays by cruise lines, airlines and casinos.....

Lots of opportunities in bargain bin IF you look around......

Old @ home play may cool off......

Good luck with your own analysis and take of strong and weak sectors.

BLOG does NOT give buy or sell.

Saleem

12 comments:

stocktrader_1996 said...

Hi Saleem,

Last week: +6.49% (YTD: +37.54%)
Notable Winners (all > +10%): GAN BHVN DDOG PINS NXPI
Notable Losers: LITE

It was a great rebound week as the portfolio roared past all time highs. A balance of growth and value is proving valuable as different sectors move on different days. We are quickly approaching Q2 earnings season which will separate some winners and losers based on how management has responded to the crisis. Obviously, forward outlook is even more key. Also to watch: there are many winners far into all-time high territory and it's unlikely those will be sold before year-end as delaying the tax bill for another year will be important. Rotating into these strong stocks on any weakness should be a winning strategy. Ultimately, being fully invested as the Fed stays easy and the economy ramps from trough levels, especially as investors remain skeptical, should provide stellar returns.

Holdings: DDOG PINS NXPI ELY ADPT AKAM LOW WEN BHVN GAN SAIL LITE RUN CGC PSNL, cash 0.0%

Stocktrader

Stocks100 said...


Hi Stocktrader,

Last week Down 6.18%

YTD UP 41.75%

Saleem

psrajpal said...

Hi Saleem,

Last week: +20.21%
Notable Winners: GAN BHVN CATS NVAX VIR KRA ONEM ALT TER LVGO
Notable Losers: CLVS ACOR XELB

Paramjeet

stocktrader_1996 said...

Hi Paramjeet,

Wow, that's a spectacular week - nicely done!

Stocktrader

stocktrader_1996 said...

Hi guys,

Sold SAIL @ 24.82 to take profits

This is not a core holding, so I wanted to free up cash for other names.

Stocktrader

psrajpal said...

Hi Guys,

Sold TRUE @ 2.81
Sold ONEM @ 34.60
Bought CLVS @ 6.76
Added 25% GAN @ 23.58

Thanks

Paramjeet

Stocks100 said...

Hi Paramjeet,

Good luck with CLVS and more GAN.

Great week$$$__

Saleem

psrajpal said...

Thanks Saleem and Stocktrader.

Market is again swinging back and forth. Particularly in Biotech and Healthcare, with down start to recovery mid-day.

Sold ICD @ 4.20
Bought ELY @ 17.11
Bought VSTM @ 1.84 (Expectation of breakout)

XELB finally moved as a Retail play.

Paramjeet

stocktrader_1996 said...

Hi guys,

I agree the market is getting harder to "read". This week's feature will probably be the Russell reconstitution with some high fliers being added or increasing weighting.

Paramjeet, good luck with the moves to re-position!

Stocktrader

psrajpal said...

Hi Stocktrader,

DKNG below 40 - looks like a good buy at the moment.

Also, I plan to reenter BHVN - It is showing amazing strength.

Paramjeet

explorer said...

Hi All,

I sold the SPY put this morning & bought DKNG JUly 17 45 calls @1.80

I believe DKNG is down on California betting news even though it got an upgrade today

Thanks,
Explorer

psrajpal said...

Hi Explorer,

Good Luck with DKNG Calls.

@All

Bought DKNG @ 38.87 (Cali News is a disappointment but
Bought BHVN @ 73.60
Sold 25% ALT @ 8.05
Sold VSTM @ 1.84
Added 35% HEPA @ 2.44

Fully invested now with 0% cash.

Thanks

Paramjeet