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Weekly Summary (14/9/18) – U-turn

Since last week, both the US and Asia markets continued to slide down due to the trade tension between US and China. The situation even worsened when Trump proposed to put tariffs on another $267 billion of Chinese goods. However, there is a big “U-turn” after US seeks to restart trade talks with China. Interestingly, Trump tweeted that US has no pressure to make a trade deal while China state media responded that China wil not “surrender” to US demands in trade talks.
For US market, Apple’s shares price dropped tremendously last Friday after Apple admitted that Trump’s proposed tariffs on $200 billion worth of Chinese goods would affect Apple products as well. However, Apple’s shares price later surged before and after the launching of the three new iPhones since lowering the price of iPhone X is expected to boost the sales. In addition, Apple gained after analysts at UBS raised their price target from to $250 from $215, expecting the potential growth of the company’s services business.
Alibaba experienced free fall after its executive chairman Jack Ma announced to “retire” with CEO Daniel Zhang taking over as chairman while he will remain in his role for the next 12 months to ensure a smooth transition. With that, I bought in more Alibaba with lower price since this transition shouldn’t be a big problem that will affect the future of Alibaba. Buying stocks with a undervalued price is one of my principles which I have explained before in “MUST KNOW” Tips in Stocks Trading — Value Investing . Soon after I bought in more, Alibaba’s shares price spiked after signing a joint venture with Russian partners to launch e-commerce arm.
Also, Amazon recovered from its fall after Citi raised its price target on Amazon to $2250 from $2100. While the other stocks that I’m holding like Facebook, Netflix, Google and Microsoft traded higher after the announcement of resuming trade talks between US and China with the Microsoft performed the best by reaching another new record high.    

For Asia market, dragged by the whole Asia market, XiaoMi plunged after Trump’s propose of additional tariffs “if he wants”, bouncing back after the resume of trade talks between US and China. I managed to buy in more during the dip and many would not agree with me. Well, to me, XiaoMi is a great company which is worth to invest in. It didn’t perform well recently though with outstanding earning report since this is due to the overall bearish Asia market as trade tension flares. Time will tell and we shall see a rise after the trade tension eases with the trade talks.       

For oil trading, the oil price was up this week with the cutting down of two oil rigs reported last Friday and declining in crude oil inventories reported by both API and EIA. However, it dropped after the “breaking-record” supply especially higher output from OPEC reported by IEA and the concerns on economic crisis in emerging markets.

Summary of my trading activity:
Buy: Alibaba, XiaoMi
Hold: Facebook, Amazon, Apple, Netflix, Google, Microsoft
Observe: Oil
Sources: CNBC, Investing.com

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