What was recommended in yesterday's review was almost perfectly reflected in the morning's market. However, the stock market is no longer confident after more than a month's surge. After all, these days, investors have ignored inflation and interest rate concerns, and now they are getting more and more into their minds. In the afternoon, the market went down solidly, as there is a strong wind from the northwest, swiping all stocks to the bottom right.
Whether the general trend of the market has started to go down is still hard to say. There is no chance of winning against the general downward trend if it is one, in which case even investing in good stocks may not help.
But for now, I think the stock market will still go up and down, and it won't go down only from now on. Therefore, for long-term investors, it is still necessary to buy good stocks at low prices and set up profitable conditions when the opportunities come, that is, when stocks go up.
In the short term, those who dare to take certain risks can short some stocks that do not deserve but have enjoyed skyrocketed rise recently. Such a strategy can have a hedging effect, thus not as risky as you may think.
For a few typical stocks:
1. Google’s stock price continued to decline, because of OpenAI ChatGPT, and their hasty and passive response was disastrous. Although I think Google will have the ability and funds to meet the AI challenge, the final outcome is mixed. No need to enter. neutral.
2. Microsoft rose slightly yesterday morning because of the positive AI situation, but finally fell due to the general trend. Buy the dip.
3. Disney made some adjustments due to the return of the respected prior CEO, that is, now the new CEO, who made some efforts already to revamp the company, and the stock price rose sharply. But I don't like the stock. The new CEO disbanded the "traditional media" unit, which act shows that the old programs is not attractive. He said that they should focus on innovation. In that case, the bulk of media material, which is Disney's advantages will not be effectively take advantage of. And regarding innovative Netflix is more agile. Sell or go short Disney.
4. Netflix is better than Disney and has a brighter future. Buy the dip. However, the profit margin is limited. Shorting with DISNEY to form a Pair Trade has hedging advantages and is more exciting.
5. Uber. After the epidemic, Uber is benefiting from an increase in taxi drivers in such an inflation and deteriorating economy. If the economy is good, more vigorous economic activities will also be good for it. Buy. But in the case of general worsening situation, the profit margin is limited. You can short LYFT and get a Pair Trade for hedging, which is more exciting.
5. Chip companies are good because of AI. TSMC and Nvidia are good for buying the dip. No problem in the short term. TXN Texas Instruments chips have nothing to do with this, neutral.
6. Tesla is still soaring, and Musk is talking about new plans, which is very encouraging. But the stock price has risen too much, and only the brave can buy it. neutral.
7. In terms of oil, neutral. However, EXXON Mobile is doing better than CHEVRON in all aspects, and you can also do pair trading since the general situation is unclear or even bad. Might have to find another name to short which is a little worse than Chevron. Chevron is not a bad company and it wants to repurchase shares, and there is a greater risk of shorting. We short only the bad stocks.
8. Although Meta announced Buyback, and its price has risen so much, I do not see much other excitement, and it may be going downhill from here, so it is a good material for short selling. Sell.
Great insights on market trends! Just like strategic investing, making the right choices leads to success—Golden Age King stands out as a symbol of excellence and reliability in its field!