Market 2017-11-28 (FED, MOMO, and more)

Market shakes off weakness and resumes the rally, lead by Financials. FED Chair Nominee Powell had hearing before the Senate. He is expected to continue FED policy following Yellen.

As I have discussed recently, retailers shine again as good data of holiday shopping is released.

However, Tech is left behind. NFLX (+2.1%) is the only one finishes green among FAANG. NVDA -1.6%. 

 Crude -0.34% to $57.91. Gold -0.18% to $1,292.10 (resistance @ $1300).

Winners

Big banks are doing well today as Powell is dovish. BAC +3.9%, JPM +3.5%, C 3.3%, WFC 3%.

Retailers, department stores: ULTA +5%, M +4.5%, SHLD +6.9%, JCP +4.8%, JWN +3.2%, KSS +1.8%, TGT +1.4%. 

SQ (+4.2%), HPE (+3%) and HPQ (+1.9%) bounce back from recent selloff.

Losers

MOMO (-18.8%), Q3 EPS of $0.45 beats by $0.07. Revenue of $354.45M (+125.7% Y/Y) beats by $15.16M. I believe the selloff is overdone, probably manipulated. MOMO is a cash cow and current valuation is unfair. The continuous renovation will bring in more users and higher revenue. Revenue breakout: Live video service, $302.6M (+179%); Value-added service, $26.3M (+45.3%); Mobile marketing, $17.4M (-1.4%); Mobile games, $8M (-13.6%); other services, $129,000 (vs. year-ago $3.4M). Monthly active users rose to 94.4M from a year-ago 77.4M. Quarterly paying users of live video came to 4.1M and average revenues per paying user increased as well; total paying users of value-added service was 4.8M vs. a year-ago 3.4M. The drop in advertising and gaming is no big deal because MOMO is not Twitter or Facebook. The core business is live video service (85% in total) and value-added service (7.4% in total), both showing high growth rate.

XNET (-11.6%) roller coaster continues.

ROKU got hit after reaching all-time high $51.8. "Time to pop some real bubbles. ROKU, total joke," the firm tweets out. "Citron trusts Mark Mahaney at $28 price target and that is IF they can hold comp back." Citron says its Andrew Left will be on CNBC's Halftime Report tomorrow to discuss the Roku position.

My Trades Today

Double down on MOMO @ $25.6 to bring my average cost below $28.

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