U.S. Investment Strategy: Sector Rotation, Market Internals Discussion, Potential Opportunities That Are Being Set Up
Discussion on Sector Rotation and Potential Opportunities
Members,
In this note, I’m going to provide a very brief update on market internals, and outlook commentary on U.S. and China markets.
Most importantly, I will talk about Sector Rotation - a powerful way to reduce the impact of any future SPY/QQQ correction. Sector rotation can be violent and very adverse if you’re positioned heavily in one theme, so this note is quite important.
Over the past two weeks, I was proactively searching for opportunity for the folks here. I couldn’t only guide on SPY/QQQ as those indices are becoming grossly overbought and one day large selloffs can have a unsettling effect.
So at China’s range lows, my research efforts came to the conclusion of upbeat commentary on a tradable recovery, which is now in motion.
A couple key points:
Among some of my favorite names and personal holdings, we saw Trip.com (a name that I’ve been discussing for quite some time) reveal in its earnings that travel is back in fashion in China and we saw the company stay supported post-earnings.
Alibaba at range lows was an opportunity after my assessment of the Hong Kong market finding a tactical nadir.
KWEB Components such as JD, BIDU, PDD continue to recover (with great volatility)
China continues to be a Trade, so be careful as always.
I am really happy to see that many folks inside our Community have taken advantage of this bounce, and I hope to find more opportunity as they come by my radar.
Be sure to follow me on Twitter and Instagram, as that is the fastest way I get out my thoughts. I have a lot of work to balance throughout the day.
As a reminder, my focus is on quality over quantity of ideas, and that means that much of the time, I’m researching in the background finding setups that stack probability & statistics in our favor in conjunction my macro and fundamental assessment of the situation.
This short piece here will highlight:
Understanding what Sector Rotation does to the nature of the market’s ability to handle future macro outcomes
Where the Opportunity may be if there is Sector rotation
Actionable and helpful commentary on market guidance for U.S. and China investors.
I’m very happy to see our opinions play out, and am sharing a tremendous special offer to join our Community to help you become a long-term advantage player in this market. For those who know what they’re doing, folks know that I’ve created a high-value strategy newsletter service where others charge 60-80/month for what I offer yet our entry is only 20/month.
Take advantage of this while prices are still low as I very well may adjust them higher in the future given that I provide investor education value along with thoughtful market guidance.
As long as you consider yourself a patient person and open-minded, my Community can be a long-term home for you!
Now let’s talk Sector Rotation, and the opportunities (and risks) that come with it.