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Weekly Summary (28/9/18) – Bearish Month

This week, the market was down as the trade war tensions continue to flare since China cancelled planned trade discussions with US, with Trump responded that US “will no longer tolerate abuse” on trade. Besides, China’s decision of imposing new tariffs on US goods worth $60 billion came into effect on Monday. In addition, US was going to move ahead on a new trade deal with Mexico, excluding Canada.

The market erased gains after Fed Chair Jerome Powell told reporters after the Fed announced the raised fed fund rates that he did not see inflation surprising to the upside, noting: “It’s not in our forecasts.” This comments sent interest rates and bank shares lower and dragged the broader indexes down with them. Read more on how the fed fund rates / interest rates affect the stocks market.
Starting from this week, Facebook, Netflix and Alphabet, parent of Google, along with media and telecom companies, had become part of a new S&P Dow Jones industry sector for communications services while Amazon remained in consumer discretionary. In fact, it did not affect the market much.
Facebook promised to drop on-site support for political campaigns, something Facebook, Google and Twitter had done in the past. Although, two key executives who are also the co-founders of Instagram left Facebook, I think it will not affect much and it may indicate that more revenues can be explored from Instagram. Amazon has expanded its grocery delivery service from its Whole Foods stores to 48 cities across the US, opening a New York City brick-and-mortar store. I expect the share will continue to rise, targeting $2300 by the year end. 
Viomi Technology, a Xiaomi-backed Chinese seller of internet-connected home appliances, debuted on the Nasdaq stock exchange on Tuesday. It is good to know that Chinese tech giant Xiaomi is Viomi’s strategic partner, shhareholder and customer, which gives Viomi access to Xiaomi’s ecosystem users, market and data resources and related support. This means that Xiaomi’s ecosystem is still keep on expanding, growing in a rapid pace. It might be anxious to see that Xiaomi’s shares kept on dropping this week despite the rise in HangSeng Index, but I had the different point of views. I took it as  a golden opportunity and opened another position with lower price. 
For crude oil price, it hit a four-year high as sanctions on Iranian crude exports loom with OPEC and Russia refused to raise the output; however, the rise was capped after President Trump called on OPEC to increase crude oil price. Besides, the gain was capped by the rising of US crude inventories of 1.9 million barrels reported by EIA.

Starting from October, I will be changing my strategy to long-term stocks trading since I will be starting my clinical years in my medical degree; therefore, I will not be having enough time and energy to look at the market from time to time especially crude oil trading. However, I will still do some day trading in oil and stocks during my holiday. At the same time, I will only update my trading summary once a month. I apologized for that and I hope that you will understand. Once again, thank you for putting trust in me and you can continue to copy my trade if you believe in my point of views on “value investing” which I have mentioned quite a few times in my blog posts. Thank you.

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

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