December 02, 2019
State of the Markets
Trade talks have officially been halted after the US signed the Hong Kong bill this past week. China obviously was not happy as they feel the U.S. is interfering with their internal affairs. It’s quite likely trade talks continue to breakdown as we had towards the ever so critical December 15th deadline. I don’t see how we overcome this issue because the U.S. will absolutley in no way allow China to push their ways on Hong Kong. And China won’t be budging on that either. So I have no clue where trade talks go from here and I expect them to breakdown pretty badly into year end. December 15th is a big day because thats when the U.S. is set to raise a whole bunch of tariffs on items. However, markets are incredibly bullish, and everything is getting bought insanely fast. It is also a big week for data with Asia releasing important PMI numbers.
I have announced some critical changes to my trading appraoch in the chat room. Looking forward to a big December!
Stocks To Watch This Week
Nextcure Inc. ($NXTC) is a clinical-stage biopharmaceutical company, which is focused on discovering and developing immunomedicines to treat cancer and other immune-related diseases. This stock has been on an incredible roller coaster ride as of late, and it’s really only getting more and more interesting. We are currently mid gap fill on this name and with how this name moved on Friday, the momentum and technicals are only pointing towards a further push higher into the gap fill. I am taking this over $49, hard stop $44.99, price target as high as $57. This is a name you need to take with smaller size in order to be able to handle the $4 worth of room down to the stop. This also could very well turn into a swing trade.
Alibaba Group Holding ($BABA) is a Specialty Retail company in the Services sector. This company is getting interesting from a technical indicator standpoint, breaking out of its 20-day downtrend and making higher lows. It did an incredible job of holding its $181 natural support level three times over the last three weeks, and the buying strength is returning to it after analysts upgraded the stock to Outperform on Friday morning. I plan to day trade this over the $187.50 natural resistance level as it breaks over monthly highs!
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