Harpinder Kang @HarpinderKang: "𝙀𝙣𝙙 𝙤𝙛 𝙩𝙝𝙚 𝙈𝙤𝙣𝙩𝙝 𝙖𝙣𝙙..."

United Kingdom

𝙀𝙣𝙙 𝙤𝙛 𝙩𝙝𝙚 𝙈𝙤𝙣𝙩𝙝 𝙖𝙣𝙙 𝙋𝙤𝙧𝙩𝙛𝙤𝙡𝙞𝙤 𝙐𝙥𝙙𝙖𝙩𝙚 Portfolio is up 3% for the month, while the $NSDQ100 and $SPX500 gained 5% and 3.5%, respectively. 𝙈𝙖𝙧𝙠𝙚𝙩𝙨 In a couple of weeks we’ll be entering earnings season, with the majority of large-cap companies trading near their all-time highs. Expectations are extremely elevated, especially in the semiconductor sector. So far, markets have been very resilient to negative news as the AI trade keeps driving momentum. However, at some point the broader economy will come into play. The key near term catalyst to watch is the potential government shutdown in the coming days. While not exactly a “black swan” event, if it drags on, it could trigger a sharp selloff. 𝙋𝙤𝙧𝙩𝙛𝙤𝙡𝙞𝙤 𝙐𝙥𝙙𝙖𝙩𝙚 This month I added to some positions, but I still hold about a 35% cash position ready to deploy on market pullbacks. Some of the names I’m watching closely include $SPGI (S&P Global Inc), $AMD (Advanced Micro Devices Inc), and $CRM. I also trimmed half of my Google position, locking in profits. I’ve started building a new position in Asana. With earnings coming up next week, I expect it could provide further opportunities to add. Overall, I see Asana as a strong investment for the medium to long term horizon. Additionally, I’ve begun building a short position in a couple of semiconductor names. My view is that market expectations in this sector are far too high, and a cooling off period is likely sooner rather than later. This should also serve as a hedge against my AMD and ASML positions. 𝙁𝙞𝙣𝙖𝙡 𝙏𝙝𝙤𝙪𝙜𝙝𝙩𝙨 For now, the market continues grinding higher. But with technicals looking overbought, expectations extremely high, and the VIX sitting near the lows, risks are building. In the short term, anticipated interest rate cuts are giving stocks a tailwind, but eventually the economy and earnings will move back into focus and could act as a headwind. From a technical perspective, the S&P 500 still points toward the 7000 level, which is why I remain invested. At the same time, I plan to use any pullback opportunities to add quality stocks with the cash position I’ve set aside. If you have any questions, please feel free to ask below. Thanks for reading.

4 Mentioned

NSDQ100

SPX500

SPGI

S&P Global Inc

AMD

Advanced Micro Devices Inc

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