Tech/Growth Stocks are Booming and How to Manage The Volatility_老虎社区_美港股上老虎

Tech/Growth Stocks are Booming and How to Manage The Volatility

A few days ago, I have posted my view and since when the rotation back to tech and growth stocks is obvious (Click to read if you haven't)

Market Update

It is clear that NASDAQ has been very resilient last week during the broad market correction where it is the only index that closed slightly up (+ 0.35%) while the other 3 indices dropped 2-4.5%.

Having said that, not all tech stocks are bullish. Software (Ticker: IGV) and Internet (Ticker: FDN) are the outperformers to focus on together with Solar (Ticker: Tan) and Clean Energy (PBW).

Trade Management - Early Exit

The on-going sector rotation since Feb 2021 from growth to value and now back to growth again can be confusing. Unless you adopt a buy and hold strategy with a long term horizon (3-5 years), you might find yourself keep cutting losses, break even or to see a big chunk of profit wiped out simply because the market is pretty much in a trading range and so are a lot of stocks without clear up trend.

During choppy market, it is essential to for us to adapt to the market environment. Instead of anticipating riding a sustainable up trend, we need to constantly look out for tell-tale signs for change of the market condition.

Example: OLN

I first covered OLN on 23 May (click to refer to this post) and that's for a scale in position (2nd entry as circled) while first entry was on 26 Apr as circled. OLN is certainly a value stock and has been trending up nicely within the up channel.

The first tell-tale sign is an increase of supply followed by a biggest bearish bar during the reaction. Next day there is no immediate follow through to the downside and provide an early exit, that could saved around 8-10% drop.

Of course, there are also other recent trades that triggered stopped because of the market correction. Though it is not a happy event to experience a lost, this is only one or a few of the many trades along the trading journey with a planned and acceptable loss and we will certainly experience similar situations in future.

So, it is important to realize the market condition and adapt your trade management and strategy accordingly.

OLN Daily Chart

US: Bullish Signals With More Upside — BOX, ZM, SNAP plus Q&A: NIO, XPEV, LI vs TSLA

Despite the market correction last week, these 3 stocks — $Box Inc(BOX)$ , $Zoom(ZM)$ , $Snap Inc(SNAP)$ are showing strength and flashing bullish signals for more upside ahead. At the end of the video, I will also answer questions from readers in my Telegram Group related to the China electric vehicles NIO, XPENG, Li Auto vs TSLA. Watch the video below:

Timestamps:

0:27 BOX (Box Inc)
4:36 ZM (Zoom Video Communications Inc)
9:10SNAP (Snap Inc)
11:36 Q&A
12:10 TSLA (Tesla Inc)
14:40 NIO (Nio Inc)
17:05 XPEV (XPeng Inc)
19:47 LI (Li Auto Inc)

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