How genuine is this Feeling: the worst of 2022 could be over. When the market bounces back sharply from lows even on bad news, then you cannot blame traders for having this thought. Today the market continues with its upmove and now the market seems to be climbing despite worries (Inflation, Interest rate hike, recession, and Geopolitical worries). The market environment has changed so much that the stocks are now rallying ahead of earnings.
Daily Dose
Trading Optimism
There is a difference between Hope and Optimism. Hope has no basis, Optimism has. The price on the screen is screaming that the market has some Bullish Momentum now but everyone is worried. There is a view this might not last long. This can be just one big rally for more sell off or this could be the market climbing wall of worry. Nobody knows what lies ahead but for now, play long in stocks exhibiting clear strength. The sentiment is so bad that the market can surprise everyone by sustaining the upmove. Here are the stocks I am watching and the trade setups
State of the Market: Holding the Gains
There is an interesting contest happening between low expectations and oversold market conditions. Can the Gains sustain?
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State of Large Cap stocks 7/21
The indices continue to climb higher and here are some stocks that made some interesting moves today
NASDAQ Bullish Dow Quiet
The trading nature of the US market has changed in a pretty dramatic fashion over the last week. The stocks are moving higher and holding on to the gains, something which we have not seen for a while. Lots of you might wonder what has changed. It looks like Perception, the key factor that drives prices.
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Disbelief Rally
2022 has been a terrible year for the US stock market investors. The market has been hammered so much that now bounce is not enough to attract traders. There needs to be follow-through buying and gains need to hold before the confidence returns. Now, over the last week, the market did two things that seem to have attracted some new money: 1. It did not collapse on terrible inflation data; and 2. Every decline since then has been bought. Having said that, the real problem is the lack of sectoral leadership. Everything is bouncing from oversold conditions and such bounces are very hard to play because they can end any day and prices would just collapse. Trading in such an environment is always difficult. Hence, it would be prudent to focus on stocks that have an underlying story that can help stocks make a strong trending move.
The market recovery: It’s bumpy
The market observations
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Nervousness back ahead of earnings
Here are the market observations for today
The New High List July 08
There is always a bull market somewhere and it can be seen in stocks trading near 52-week highs or all-time highs. It indicates strength in the stock and usually, such stock withstands correction and makes a much more sustained move over a period of time. Here’s the list as of today –
Is the US market now climbing wall of worry
The US market has settled down over the last 2 weeks. I like the price action in individual stocks. Some trades have started working. It’s premature to say that we might be out of the bad phase but the market has been so bad for so long that even small rallies now look so good. The trading environment is no longer that hostile.
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