July 2019 Hot Stocks - Intro
3rd July 2019 today, the SNP500, DJI and NASDAQ at record high just before the US National day holidays for 2019. I have taken this opportunity to aggressively take profits by selling 75% of all my US stocks. Back in mid May 2019, I did have a sell-off of up to 50%. However in first week of June 2019, I timed the bottom barrel and bought Nvidia, Facebook and Baba shares. All these was announced on my Facebook Page. So do follow me more for future updates.
I’ve also shorted the NASDAQ as of today for an anticipate 600 points correction. With a stop loss at 500 points.
Check out the video below for the FUNDAMENTAL ANALYSIS!
Since the start of the infamous trade war on March 2018, there have been three unusual peak plateau driven by US monetary policy. First peak dropped by 10%. On 20th May 2018, trade war was put on hold, which stimulate the bull market to aggressively recover in the next 6 months,
After an aggressive recovery, the US market hit another plateau. On September 2018, US slapped $200bn worth of sanction on Chinese goods which drove the following 15% drop.
The third peak recovered in 6 months and dropped a small 5%. Now the fourth peak have arrived on the 3rd of July 2019. After the G20 Sumit, potential rate cut by the US FEDs and still no clear sign of convincing growth, the market is very vulnerable to another plateau reversal.
What Sectors are vulnerable or Bloated?
Paypal, Amex, MasterCard, Visa: all had a good run with an average boost of 20-30% in 2019 alone. Cashless transaction, blockchain and bank disruption may be the key forinvestor appeal. However globally every nation may different mode of own establish payments. China has Ali Pay and We Chat, Middle Asia have Paytm, Europe have Ayden and Wirecard.
CRM have a PE of over 100. Adobe hitting record high over $200 which makes it vulnerable. VM Ware recent 25% dropped despite good earnings. Microsoft and Amazon are on a good run.
FB recently announce Libra.
Amazon launching Beauty industry
Apple new online subscriptions
Netflix growing subscribers and cost increase
Google slowing down.
Regardless of performance, a bear market will always drag these heroes down on cash volume momentum.
2019 have been a year of IPOs. Uber, Lyft, Pinterest, Beyond Meat, Slack and many more. A total of at least $250bn introduced to the US market with no key fundamental profit in the near horizon. Start of a new DotCom Bubble?
Personal Views and Actions
I am more than happy to take profits for now. Still a long term view growth on Apple, FB, Baba, Nvidia, Uber, TTWO, Goldman, VMW and Costco. Personally the market is too vulnerable for a fall.
As a personal investors, our cash are limited and we need to keep our powder dry for another day.