Trading room – Wed 21 Nov 2018
The US Dow Jones Industrial Average and S&P 500 fell sharply on Tuesday and turned negative for the year as a decline in the retail stock, Target pressured retailers, while some of its most popular tech shares dropped again.
The 30-stock Dow dropped 551.80 points to 24,465.64 and the S&P 500 plunged 1.8 percent to close at 2,641.89. Meanwhile, the Nasdaq Composite also dropped 1.7 percent to 6,908.82.
The continued fall on Tuesday’s came a day after members of the popular “FAANG” trade —Facebook, Amazon, Apple, Netflix, and Google-parent Alphabet — all closed in a bear market, down more than 20 percent from their 52-week highs (a widely used barometer by Wall Street).
If this is the case, how does one expect Malaysian technology and semiconductor stocks to perform in the coming weeks?
The US tech crash has been well projected in advance for those who follow the mPower Algorithm report. Are they at the beginning of a decline or in the last leg where opportunities exist to scoop up cheap prices?
What is the outlook for Malaysian tech stocks now as well?
Over the last two weeks, these two local sectors have been flat to rising and oblivious to the dark clouds in the US Nasdaq.
Are they signaling a bull trap or will they outperform the tech crash in the US?
Is it arise to further high or is it the end of a counter-trend push?
There are always opportunities for elite traders when stocks move violently and these two sectors are likely to be in focus.
You need to read the mPower Algorithm report today and find out just how you need to act in this predominantly favorite sector in Bursa Malaysia.
Your action may be crucial to your outlook for the local market as well as to your portfolio.