Coming week is extremely challenging when major technology companies are reporting.
NXPI on Monday
AMD & EBAY on Tuesday
FB PYPL QCOM SHOP on Wednesday
AAPL AMZN GOOG MGM on Thursday
As you can see from the above list, most of the above stocks have made series of new all time highs and are extremely vulnerable. most have been rewarded with one time upgrades or additional hardware due to work from home because of COVID-19.
I expect most of them to beat expectations by a wide margin.
Guidance may not be as rosy, that is where I think stocks may give some recent gains.
There has been too much euphoria given an unfortunate impact due to Corona Virus.
Impact has been extremely positive for few groups and devastation for other groups.
As far as COVID-19 is concerned, it is in neutral mode in terms of positive & negative.
Stocks has to earn multiples going forward.
Earnings may not be the catalysts as everything may be priced in.
We need a digestive / pullback phase for many many stocks which has created trading genius in some traders.
Markets have seen many gurus, whose time comes and goes with each cycle.
I am expecting difficult and challenging time for many stocks after earnings, thus it will be wise to lock any gains before it evaporates, in some cases, it is coming out of thin air.
Until next earnings report, it may be a very dull and boring market for many traders, no more 10% move every morning in same sector.
Market has been very good and predictable which is extremely unusual in normal trading.
For those who may not be aware, long term average gain in S&P 500 is around 8% annually. So be happy IF you are beating this by 2000%.....
Good luck with your thesis about market going forward.
BLOG does NOT give buy or sell.
Saleem
3 comments:
Hi guys,
Last week: -1.15% (YTD: +48.76%)
Notable Leaders: RUN WEN
Notable Laggards: ELF GAN NXPI SQ
It was a rest week for the markets and my portfolio. In the midst of summer and earnings, I think it's always difficult to predict individual stock prices, so I just have to stay diversified, and with stories I think can power through, even if there's short term disruptions. At some point the market may droop on election uncertainty, but it's hard to predict when that day comes.
Portfolio: PINS RUN SQ ELY AKAM LOW GAN NXPI WEN DDOG LITE HUBS PLAN BHVN ELF, cash 0.0%
Stocktrader
Hi Stocktrader & Paramjeet,
Last week Down 3.55%
YTD UP 29.07%
Saleem
Hi Stocktrader,
Bought TECK @ $18.46....recommendation by Pete Najarian on Halftime Report
Saleem
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