Market 2018-03-23 (Correction Again? MU, and more)

Market experiences another bloody week amid trade war threats from White House with China.

Dow Jones -1.8%, S&P 500 -2.1%, Nasdaq -2.4%. Dow Jones is very close to Feb low during that correction.

Crude +2.47% to $65.89. Gold +1.42% to $1,346.20 as safe-haven.

Treasury yields almost flat. US dollar drops again, UUP -0.36%.

 For the week, Techs -7.6%, Financials -7.1%, Healthcare -6.7%, Industrials -5%; Energy fell only -0.8%.

On News

China has listed 128 American products for retaliation. The products had an import value of $3B last year, and include American steel, aluminum, pork, and wine. It is considered mild response. However, more actions may follow.

Following chart shows the trades between US and China in 2016, by products.


McMaster is fired. New National Security Adviser John Bolton is a war-monger. He wants wars with Iran and North Korea. He was involved Iraq War. He has worked for Russia before. All these make investors worry a lot!

Trump signs the $1.3T spending bill passed by Congress, hours after threatening to veto it over dissatisfaction with its immigration provisions.

Democratic Republic of Congo’s mining minister rejects a proposal by mining companies to soften some provisions in the country's new mining code in exchange for higher royalties.

Winners

Gold Miners shine, NUGT +8.3%.

FL +4.4%, probably helped by Nike ER (NKE +0.3%).

Defense stocks benefit from new spending bill: LMT +2.8%, RTN +2.6%, NOC +2.1%.

YY +2.9% is one of few stocks showing green today.

Losers

Square (SQ -6.3%) was cut to sell as Craig-Hallum's analyst Brad Berning says that competition and challenging comps will hurt revenue growth and the stock.

MU -8% is downgraded by Citi from Buy to Neutral following yesterday’s ER. Outlook for DRAM is good, not the case for NAND. Stifel raises its PT from $85 to $95. Mizuho Securities raises its PT by $4 to $70. Cowen raises its PT by $10 to $65 but Marvell (MRVL -2.6%) remains the firm’s top idea.

WDC -8.4%, STX -4.7%, AMAT -6.1%, LRCX -5.7%, NVDA -3.7%.

FAANG: FB -3.3%, AMZN -3.2%, AAPL -2.3%, NFLX -1.9%, GOOG -2.6%.

Box -8% after Dropbox (DBX +35%) IPO.

My Trades Today

Sold 1/3 YY.
Added more C.

Comments

  1. UnknownMarch 23, 2018 at 7:06 PM

    这个盘很难做。最关键的是trump天天砸盘。典型的不作不死。

    ReplyDelete
    Replies
    1. UnknownMarch 23, 2018 at 7:23 PM

      可不是吗，这周全是他砸的，感觉离坐牢不远了

      Delete

Post a Comment

Popular posts from this blog

Wanna Retire Early, Start Planning Now!

Image
It is very important to plan your retirement  as early as possible.  Why? It is because the money you put into investment will grow fast. If you put $1k into your retirement account at age 20, it will grow into $15k when you reach age 60, assuming 7% annual return rate. As comparison, if you put $1k at age 30, it will only grow into only $7.6k, about half of the former case! One popular topic these days is to get retired early, for instance, at the age 50. Assuming the average yearly expense (including medical cost) is $100k and you live to age 90, you need at least $4M by age 50. Of course if you plan to get retired at age 60, then the retirement fund will be smaller ( $3M ). There is a new phrase " Million Dollar Poor "  ---- $1M may only support you from age 70 to 80 --- retire @ age 70 and decease @ age 80. In this article, I would like to introduce the possible stable income sources for retirement. (This is a brief introduction, for more details, please ask your
Read more

Impacts of Tax Reform --- My First Thoughts

Senate passed the messy tax reform bill last night. The new tax code will start in 2019 (not 2018). The next step will be negotiation between Senate and the House to put together the final bill for Trump to sign. Put aside how the tax reform will affect personal finance, one thing is for sure --- corporate tax rate will drop from 35% to 20% . Multinational companies will also bring cash back to US. Corperate Tax Rate Drop Well, many big companies have already managed to pay low tax rate, for instance, IBM pays only ~10%. You can find tax rate information in companies' ER. Therefore, not everyone benefits from the 20% tax rate. Following are a few companies who are paying tax rate > 35% (most in retailers and restaurants). Restaurant: CMG, DENN... Retailers: CVS, LVS, GPS, JWN, M... Auto retailers: AN, KMX... Healthcare: Anthem, HUM, DGX, DVA... Transportation: JBHT, LUV... Energy: COP, PSX... Industrial: GWW... Financial: SCHW, PAYX... Utility: WEC...
Read more

Market 2018-02-05 (WOW.... Bloody)

The quick bounce in the morning turned out to be a trap. The selloff is so violent that there are almost no survivors. The deep dip  around 3pm is especially evil. The market is definitely in panic mode. Dow -4.6% to 24,343. S&P -4.1% to 2,649. Nasdaq -3.8% to 6,967. And the selloff continues in AH. The money floods into Treasuries : 30-year +1.12%. 10-yr +0.74%. 5-yr +0.51% . 10-yr note drops from above 2.85% to 2.7% (about last Tuesday/Wednesday level). This may calm some nerve. Currently it is hard to predict how much lower indices will go. I would suggest to prepare your own shopping list and start to add positions. I am fully positioned myself. I plan to hold and wait. Commodities: Crude -2.73% to $63.66 . Gold +0.28% to $1,341.00 . Bitcoin is also facing another run of selloff as major US & UK banks ban Bitcoin credit card purchases . The lowest price today is below $6600 from coindesk. To be honest, there is no particular bad economic news today. Instead, we
Read more

US Treasuries and Yields

Image
Rising Treasury Yields have been a hot topic in the past few weeks, which is blamed to be the reason behind recent  market correction. Some people are totally panicked as 10-year yield approaches 3%. I would suggest to " Keep Calm and Carry On ". In this article, I would like to give you some background, and possible trend. US Treasuries Basically US treasuries, including short-term and long-term, are the national debt of United States (国债). US currently have debt of $20T . Debt/GDP ratio is 104% in 2017 , as shown in the chart below (grey bars represent recessions). As comparison, China Debt/GDP ratio is 46% in 2016; Japan is 238% . The debt falls into two broad categories: Intragovernmental Holdings and Debt Held by the Public. Intragovernmental Holdings $5.6T, 30% of total. This is the portion of the federal debt owed to 230 other federal agencies, such as the Social Security Trust Fund. This part is not affected by market. Debt Held by the Public $1
Read more

Market 2018-02-06 (XIV, MU, MOH, and more)

It is a choppy day. The early tradings are similar to yesterday --- opened low followed by a quick bounce. However, indices hung around afterwards and marched north around 2:30 pm. Dow +2.3% , S&P +1.7% & Nasdaq +2.1% . I think the -10% correction is over. The indices retreated back to pre-TAX-Reform level in the intraday low. However, it could remain the choppy way for near-term. Utilities has the worst performance, XLU -1.5% despite the broad market rally in late hours. Treasurys: 30-year -0.9%. 10-yr -0.6%. 5-yr -0.4% . 10-yr note stays @ 2.8%. Commodities: Crude -1.1% to $63.45. Gold -0.9% to $1,324 . The American Petroleum Institute (API) reportedly shows -1.05M barrels of crude oil for the week ending Feb. 1 vs. last week's build of +3.23M barrels. Gasoline reportedly shows -227K barrels and distillates show a build of +4.52M barrels. I think refiners face margin challenges. Yesterday, many analysts called for buying dip instead of being panic. Goldman's D
Read more