Hi everyone, I’ve been really busy with work so this post is a bit off the normal schedule. I have not made any changes to BABA, INTC, or BILI and am continuing to hold them. The market has been quite volatile, so let’s also take a look at some of the longer term charts of the indexes.
BABA weekly chart below. Delisting fears are back again and investors don’t like it. BABA has been stuck in the trading range of 80-120 for most of this year, and I suspect this will continue unless there is a major catalyst. For short term traders, it might make sense to short near 120, and buy near 80.
SPY weekly chart below. The market doesn’t like the high inflation reports. The Fed is raising interest rates aggressively to try to tame inflation, and SPY has been dropping to compensate. From a technical perspective, the index still looks to be in a longer term uptrend, but if we go slightly lower (near 360-370), I think the index will drop quickly due to panic sellers. If going long, you could use a stop loss at 370, and a profit exit at 420 (that’s a risk of 15 to a reward of 35). I am bullish at current levels for the short term (1 – 2 months) because the risk/reward favors the index moving higher.
META weekly chart below. I think the market has overreacted to negative news so being long at current levels for the long term (3-5+ years) would make for a decent trade/investment. I think that a mean reversion should take us back to around the 230-250 range.