Market 2017-12-01 (Energy, WDC, and more)

Wall Street is trying to find the direction between Tax Reform and political chaos in White House.

S&P500 dropped as much as 1.5% this morning on Flynn's news. Flynn pleads guilty to lying to the FBI. He is now fully cooperating with Muller. Next one on the list will probably be Kushner. At the meantime, gold and bonds pop before fading.

However, the market gradually recovers most of the early loss. Yesterday Jim Cramer pointed out that this is a melting up market right now. North Korea doesn't matter; Trump doesn't matter; nothing matters; maybe through the end of this year.


Winners

USO (+1.7%), UNG (+0.7%) OPEC agreed to extend the production cut till the end the 2018. Energy  Sector shines today (lots of winners today). However, I don't expect USO to go much higher due to the rig count increase (by 6 this week).

AMWD (+28.7%) pops despite ER miss. Q2 EPS of $1.23 misses by $0.03. Revenue of $274.77M (+4.0% Y/Y) misses by $8.68M. The pop is due to AMWD acquires RSI. It (a cabinet maker) was in my portfolio for a while before I lost my patience.

CMCSA +2.4%, VZ +0.7%, T +0.3%.

M (+1.6%) plans to hire more seasonal workers --- hinting busy traffic in stores.

Biotech (IBB +0.4%) is a safer place than Tech. CELG +1.3%, GILD +0.8%, AMGN +0.9%.

QD (+0.9%) China introduced new rules to put a lid on the fast-growing cash loan sector: No loans to borrowers without income, no misleading consumers into over-borrowing, loans not to be used for stock market or property speculation, caps on interest rates. QD announced they welcome the regulations. The buyback plan is raised to $300M (vs $100M). However, YRD -5.7%, XRF -19%.

WDC (+0.6%) I think WDC has found its bottom. Here is an nice article talking about WDC-Toshiba love-hate story for you to read if interested.

Losers

MOMO (-6%) continues its free-fall for no reason.

GE (-2.2%) recent inside buying fails to boost investor confidence. I think the stock price will hang around $18 for near-term.

Techs: FB -1.2%, GOOG -1.2%, AMZN -1.2%, AAPL -0.5%, NFLX -0.4%, BABA -1.4%, BIDU -1.5%, WB -3.4%, SINA -2%, NVDA -1.5%, MU -0.9%, SQ -2.7%

MAT (-5.4%) Recent rally is due to take-over speculation. As the rumor fades, price drops. I am glad I have exited the position with some profit.

ULTA (-4.1%) drops despite good ER. It has stayed in a down trend for a few months --- trying to build bottom. It is a very good company on my watch list.

AAL(-2.9%) stupid, gave too many pilots vacations for holiday travel time.

My Trades Today

Sold 30% GILD @ $75.4 to reduce weight to 5%. It has been my core holding for several years.

Bought SQ @ $36.8.

Added more WDC, average down to $79.6.

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