August 24th Daily Market Note: Tech experiences a large reversal and the Retail sector sentiment is dampened further by Dollar Tree
Premium Daily Note: August 24th, 2023
Daily Market Note: August 24th 2023 by Larry Cheung, CFA
Tech experiences a large reversal and the Retail sector sentiment is dampened further by Dollar Tree
Forward-looking Conclusions of this note:
Macro: Large investors fade the market’s opening strength ahead of Jackson Hole tomorrow
Stock-Specific: We saw an opportunity to get long Dollar Tree at $127/share (at 20 Daily RSI) this morning, and it had immediately moved up to $130/share minutes after my note. Selling pressure remained high, however, and the stock remained strongly subdued throughout the day. Going forward, I will include Intraday parameters in any provided guidance to help folks take gains if desired so that profits don’t evaporate if the stock retraces. My personal holding period preference is intermediate-term for fundamentally strong companies, but I completely understand if folks want to get an immediate ROI.
Bonds: Bonds are in a holding pattern ahead of Jackson Hole Tomorrow
China: Our HK-Listed positions started earlier this week are up 2-3%, and on a multi-week timeframe, we believe the Hang Seng can recover back to touch 18,500-18,600 or better before further selling (now 18,200). This implies continued further upside on China ADRs in the U.S over the coming weeks, if markets are stable.
Today’s intraday fade at the opening bell unnerved quite a lot of retail folks, but we’ll continue to provide thoughtful guidance as volatility picks up. Stay calm. Daily Market Note is below.