Meme Bull market in motion

The Market does not take orders from anyone. The market does not give a damn to your expertise. The market does not care what your belief system is. The market will do what it has to do and if you are in the market – you should pay attention to it.

Here are the market observations for today

1. The market has a habit of doing a crazy thing when you least expect it. Yesterday was one such day.
2. It was not the quality oversold stocks that saw bursts in buying activity but the meme stocks (AMC and Gamestop) staged a big comeback.
3. The meme stock I like: Blackberry. It broke out yesterday and seems to be holding the gains for now.
4. Large-cap indices continue to remain overbought. NASDAQ is now at 15000 and S&P 500 is near 4500
5. The Chip stocks AMD and NVidia are holding the gains but the real surge came in Taiwan Semiconductor TSM. It’s up 6% today. Here’s why.
6. One should always buy a blue-chip stock at Line of support. I recommended TSM at $110 just on August 23. I even covered AMD at $75 and see what happened.
7. You know the market is crazy when stocks like Takung Art TKAT rallies 100% in 3 days. Is this an NFT craze and will it spill over to DLPN? These kinds of stocks are super risky to trade.
8. NFTs non-fungible tokens are a digital representation of real-world objects that are bought and sold online. It sounds crazy but there is a real business out there. As per one estimate, NFT trade has raked in $2.5 billion in the first six months of 2021. [yaah crazy]
9. Chinese stocks after two days of crazy move now are pulling back. One should avoid these stocks for now.
10. Two retail stocks hammered today on disappointing earnings: 1. Nordstrom JWN and 2. Express. Brokerages have downgraded the stock.
11. It was not all bad for retail. Dicks Sporting Goods DKS posted a strong quarter. I continue to like Macy’s. 
12. Retail companies cannot afford revenue miss as cost pressures continue to escalate (wage pressure + freight costs)
13. Investing in Biotech stocks is always risky because prices can plunge without any warning. Cassava SAVA is down 20% on news that the company used fraudulent data to showcase the promising result in patients with Alzheimer’s disease
14. Vaccination is picking up in the United States and its driving interest in Cruise line stocks but these stocks are just making a trading move
15. Affirm finally breaks out above $70, thanks to the brokerage upgrade from Bank of America. They have put a price target of $82.
16. One segment where there continues to be a lot of interest: Cybersecurity. I am glad SentinelOne is making a breakout move from this space.
17. It is a good trading market right now but you never know. The market can change its character anytime and hence one should be vigilant.
18. When a stock breaks out to a new high, it opens up the possibility of strong gains ahead. Will this happen with MiMedx Group MDXG?
19. Always have an open mind when it comes to the market.
20. Three grand essentials to happiness in this life are something to do, love, and hope for.

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