The Summer Doldrums Drone on

Last week was yet another negative one for global stock markets, with the Dow Jones down 1.79%, the S&P 500 falling 1.25% and the NASDAQ tumbling 1.65%. The MCSI Emerging Markets Index also ended the week 2.21% lower.

In a bullish sign for the Chinese stock markets, your position in Vipshop Holdings Limited (VIPS) added 8.11%. With the Shanghai stock exchange up 4.92% overnight, you may see a pop in this stock today. I’ll be looking to exit the stock on any such pop, as your $24 call options on the stock are set to expire at the end of next week.

You were stopped out of both Halyard Health Inc. (HYH) and Qualys, Inc. (QLYS) at a loss.

It continues to a very difficult summer for stocks. The relative stability of the major U.S. indices belies the fact that few stocks are holding up the broader averages. Market breadth is very narrow, and most stocks are down — many falling quite substantially. This state of affairs also makes it tough to recommend shorting any of the major indexes, as they continue to be locked in a trading range.

Market sentiment continues to be lousy. Previously strong performers such as biotech and chip manufactures continue to be weak. Even the star of the summer, Ambarella Inc. (AMBA), the source of some solid profits for you, has flattened out.

In a famous interview in Market Wizards, Jim Rogers revealed that one of the secrets to successful investing and trading was to recognize those periods in the markets when you need to “just not play.”

This week is one of those times.

Meanwhile, I’m looking for a new Bull Market Alert recommendation to offer you next week.

Portfolio Update

iShares MSCI Hong Kong (EWH) dipped 0.99%. With the heat still on regarding the “China bubble,” Hong Kong continues to be a good alternative. And, in the face of the ever-rising U.S. dollar and U.S. bond yields, Hong Kong could continue to see gains for quite some time to come. EWH also remains near its 200-day moving average (MA) — a good sign for a possible positive move. EWH is a HOLD.

Vipshop Holdings Limited (VIPS) added 8.11%, gaining back all of the ground lost over the past two weeks. VIPS also rose last week in anticipation of its coming Aug. 10 earnings report, scheduled after markets close today. The analysts’ consensus rating on VIPS is a “Strong Buy,” with the most bullish firm setting a price target of $35.00. VIPS is a HOLD for the moment, but a positive earnings report will change this as VIPS is very close to its 50-day MA.

Avago Technologies Limited (AVGO) fell 2.07% last week. AVGO has drifted lower as of late due to weakness in Apple, Inc. (AAPL). Canaccord Genuity reiterated a “Buy” last week and has a price target of $165 — a potential 34.63% move above Friday’s close. AVGO is expected to announce earnings on Aug. 27, and the analysts’ consensus estimate is $1.94 earnings per share. AVGO is a HOLD.

Infoblox (BLOX) dipped 2.17%. This newest addition to your portfolio traded sideways last week, maintaining its position above the 200-day MA. BLOX unveiled its new Infoblox DDI for Amazon Web Services (AWS) early last week. This product inserts Infoblox security into Amazon’s AWS Cloud offering — an extremely large and popular Amazon cloud offering. BLOX is a BUY.

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