Yesterday, glove stocks dropped sharply. The sell-off came after a 4-day lull in upward price movement for most of the big 4 glove stocks (except for Harta). The price drop yesterday broke the uptrend line in the current rally for most of the glove stocks, which began on 11 September. Unless the share prices can recover above the violated uptrend lines, the glove stocks could well have made a temporary top.
With
increasing news flow of the imminent arrival of vaccines, investors
would have to weigh the return from holding onto their glove stocks
against the risks that the rally may have peaked. In times like this,
investors should consider taking some cash off the table. Redeploying
the proceed to some deeply sold-down stocks, like AIRPORT or GENTING,
may be a good diversification strategy to benefit from the arrival of
the vaccines and the normalization of life as we know. Good luck!
http://nexttrade.blogspot.com/2020/10/glove-stocks-is-that-temporary-top.html
