Thanks to Trump, Beijing has no choice but to create its own "centre of the new universe" for the chipsector. The headline last week was largely ignored by many investors but I think will snowball in the days to come. How to create your own nucleus. Bring in your friends. When a bully does not want to play ball, try and exclude him/her. I think it is only natural for China to put more investments and shift their upstream downstream partners towards Asian minors.
The real impact may not be felt immediately but going by the thematic plays, the markets are always keen to look for the next crop of highlight counters. It makes for easier trading and gravitational pull of retail investors.
I was handed the list below a week ago and have been monitoring the volume and price action since the news came out. Decided to post it cause I can see the bubbling of volume and positive price action. Somebody somewhere is readying the ship. Check out the following counters.
Gloves did it best work already and looks very tired. The thematic play on IT worked for a while but seems to be puttering as well. The switch to healthcare and vaccine related counters reared its head but was shortlived as well. Lots of liquidity looking for new direction.
Not all will fly at the same time even if this proves true. Watch and monitor their volume price action.
p/s this is an opinion and not a call to buy or sell.