Daily Dose

The Resistance matters

May 18, 2022 by 2deepaksingh Leave a Comment

When a stock breaks well-defined support, then that support becomes the resistance.

In my article, Reading S&P500, I mentioned about 4100 as the key resistance and how the market can fool everyone with rise. Yesterday, it rallied to levels near 4100 creating short-term enthusiasm and today got a perfect excuse to sell off. S&P 500 is down 3% now and Corporate America is warning about inflation and economic slowdown with absolute clarity. The sell-off has been steep and the traders who bought the market yesterday learned the lesson again. It’s a bear market where you don’t buy the dip but sell the rally.

Good Retail Sales and Oversold Bounce

May 17, 2022 by 2deepaksingh Leave a Comment

The US retail sales rose 0.9% in April and 0.6% excluding autos, slightly above the consensus estimates. This is the fourth consecutive increase in monthly U.S. retail sales. The US consumer continues to shop but inflation is impacting its spending power. Also, after a long time, the market has greeted good news with a good bounce. S&P 500 is up 1.4%. Despite early morning pressure, the US market is trading with lots of strength.

Reading S&P 500

May 16, 2022 by 2deepaksingh Leave a Comment

The market makes an obvious move in the least obvious way. In other words, the job of the market is to trap you before making an obvious move. Let me explain how S&P 500 can make a counter-trending move over the next few days and weeks before making the obvious move.

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The market is screaming May Day May Day

May 2, 2022 by 2deepaksingh Leave a Comment

The greatest glory in living lies not in never falling, but in rising every time we fall. -Nelson Mandela

Here are the market observations for today

Large Cap Money Flow Newsletter 04/29

April 29, 2022 by 2deepaksingh Leave a Comment

When the market is confused, it moves in a crazy fashion. One day it will rally as if there is no tomorrow and then the other day, it will collapse as if the world is coming to an end. It’s very hard to make any sense of what the market is trying to accomplish. The US stock market is extremely oversold but having said that the nervousness is keeping the bullish sentiment in check. There is no clear direction as of now.
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Large Cap Money Flow Newsletter 2204/22

April 22, 2022 by 2deepaksingh Leave a Comment

S&P 500 headed toward its third-down week in a row. The bears are in complete control. Every small rally in stock is aggressively sold into. Federal Reserve chair Jerome Powell has now set the stage for 50 bps rate hikes in the next few meetings and the market is worried that aggressive rate hikes might trigger a full-scale economic recession. Hawkish Central Banks and rising US bond yield is scaring everyone. S&P 500 after a brutal sell-off yesterday is down another 1.24% today.

Large Cap Money Flow Newsletter 2104/22

April 21, 2022 by 2deepaksingh Leave a Comment

Revenge Travel is for real and most airline companies continue to confirm the trend. This was known but what got the market excited is that despite inflationary pressures and higher fuel costs, airline companies are easily able to pass on the costs. Today, the ETF representing Airline companies JETS is up 5%. I recommended JETS as a buy a few days back and it seems now the trend is gathering momentum. But what about the broader market – well it continues to struggle. The early morning excitement has disappeared with the pick-up in selling pressure.

Large Cap Money Flow Newsletter 2004/22

April 20, 2022 by 2deepaksingh Leave a Comment

In the stock market, there is always some drama happening and today the company that makes the drama is the center of the drama. Netflix stock is down 35% post-earnings. It’s consuming all the bandwidth today but there are lots of fascinating moves that seem to be happening too. Let us focus on a few stocks that should get your attention today.
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Large Cap Money Flow Newsletter 1904/22

April 19, 2022 by 2deepaksingh 2 Comments

Extreme Pessimism can drive stocks higher. Nothing else can explain the vertical rally one can see in S&P 500 today. The rally is coming on the back of lower volumes. Fundamentals continue to look ugly. The 10 Year yield now stands above 2.9% and is approaching the 3% mark for the first time since December 2018.
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Large Cap Money Flow Newsletter 1804/22

April 18, 2022 by 2deepaksingh Leave a Comment

Interest Rates and Inflation are two major problem areas for the market. The interest rates are heading higher, with the yield on the 10-year US Treasury note now rising past 2.8% to its highest yield in four years. The Russia Ukraine war continues to make the inflation problem worse. Today, Corn prices hit 9-year highs. The market is struggling to get some dose of good news but nothing seems to be working right now.

There is nothing to cheer this market up except extreme pessimism on the street but is that good enough. We cannot even say that the market has priced in all the bad news.