Market 2017-12-28 (UNG, BIDU, and more)

Market shows some cheer at the last few minutes in another quiet day.

Crude +0.47% to $59.92. Gold +0.43% to $1,297.00.

The battle between Amazon and Google is heating up. Amazon (AMZN +0.3%) disables the YouTube app on Fire TV ahead of the January 1 deadline. Google (GOOG -0.1%) pulled YouTube from Amazon products including the Echo Show citing a lack of reciprocity since Amazon refused to stock its Nest and Chromecast products. NFLX (+3.5%) is happy to see their fight.

Apple (+0.3%) is facing more lawsuits. A French consumer association filed preliminary legal complaints against Apple and Epson for “planned obsolescence.” French laws allow for fines of up to 5% of a company’s salary if found deliberately shortening product life to demand replacements. On the other hand, iPhone X demand is still a puzzle to analysts.

Winners

Basic materials go higher: JJC +0.9% (copper, 3-year high). JJU (aluminum +1.7%): CENX +8.7%, AA +4.4%. Steel: X +2.1%, AKS +1.6%, STLX +1.5%.

Natural Gas jumped for the 2nd day. UNG +7%, UGAZ +20%. CHK +4.1%, RRC +3.8%, EQT +3.5%, COG +1.5%.

Losers

Bitcoin plunges after South Korean Financial Services Commission took more steps to limit speculation in cryptocurrency trading in the country. The digital currency hit a low of $13,611.86, down 11 percent on the day, according to CoinDesk's bitcoin price index, which tracks prices from four exchanges. I would like to suggest to stay away. Regulations will only go tighter instead of looser.

MAT -1.8%, USB estimates toy sales fell 8% to 10% Y/Y for the first three weeks of December.

My Trades Today

Initiate my position in BIDU @ $235 amid the news: Baidu, the most heavily invested in artificial intelligence (AI) among China’s technology giants, will showcase its latest autonomous driving software next month (CES trade show in Las Vegas on January 8) as the Chinese government pushes ahead in a global race to gain leadership in the next generation of automotive technology. Baidu has signed strategic cooperation agreements with Xiongan New Area Administrative Committee in Hebei Province, aiming to help build the economic zone into a new benchmark of AI city, as well as in Tongzhou Beijing’s new administrative sub-center, as areas to roll out smart vehicles. Gov support is a huge deal, which may let BIDU to get ahead of other automakers or even Google because of tighter regulations in developed countries.

Comments

  1. UnknownDecember 28, 2017 at 2:02 PM

    Updates: Apple publishes an apology letter to customers for slowing down older phones to compensate for erratic battery performance.
    The company is offering $29 replacement batteries for those with an iPhone 6 or later. The discount, which represents a $50 savings, starts in late January and ends in December 2018.
    Apple will also add more battery health information to iOS to let users know when the battery begins to compromise performance.

    ReplyDelete

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