Here are some fascinating price action observations which will help you understand price action concepts and how one should scan for opportunities.
What happened with Airbnb ABNB?
It does not matter how much you like the stock, it’s not worth holding if the market decides to give up on the stock. Airbnb stock was at 210 around the middle of March and today it’s trading near $130.
The bad news is that the stock picked up declines on the earnings report. I know it will sound tempting to buy the stock near 124 but I would not do so. One lesson I have learned over a period of time: Never buy weakness.
Why IBM stock has started outperforming?
The theme matters. Since the last few months, it has all been about beaten-down value stocks, IBM too made a comeback. This was the reason I recommended IBM between 134 and the stock has not disappointed since then
The retail consumption theme is working and helping stocks like TJX
When the theme is on fire, then the market is more likely to reward earnings, than punish it. The TJX Companies, Inc., together with its subsidiaries, operates as an off-price apparel and home fashions retailer. (Marmaxx, HomeGoods, TJX Canada, and TJX International.) The company is expected to report earnings and it’s likely it might surprise on the upside.
This was the reason I recommended Skechers SKX in the investment portfolio and the stock continues to be buy on declines.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purposes. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers
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