“The desire to perform all the time is usually a barrier to performing over time.” – Robert Olstein
Here are the market observations for today:
- The indices continue to make new highs. On Friday, the tech-heavy Nasdaq climbed more than 1.2%, while the S&P 500 advanced 0.9%.
- The real momentum market is in. Small-caps now outperforming mid-caps and mid-caps outperforming large-caps. Having said that one can see momentum cooling off for now.
- The index to watch now: Russell 2000. It’s a small-cap index and the ETF tracking the space is IWM. Will it breakout above 234?
- You know it’s a crazy market when stocks are opening with 50% gains on the following day. Here’s Vinco Ventures BBIG chart making a 50% move for no reason.
- I recommended ANY @ $4 a week back. Now the stock is at 7.12. Yes, the momentum is back.
- There will always be some stock that makes a crazy move and nobody knows why. Support.com has been one such stock -10x+ move in August.
- Price Action works best when the news flow fuels the momentum. I recommended Affirm AFRM at the start of the month when it was at $64 for a reason.
- The Amazon Affirm Partnership news has resulted in a 40% spike in the stock today. Should one book profit? I will sell 1/3 of the holdings and wait till the end of the day.
- One should always buy a blue-chip stock at 200 dma. This is how it’s working out for Apple stock.
- Is SmileDirect Club the new Gamestop? Is there a possibility of a huge short squeeze? The price action looks interesting. I will buy a small amount just in case if that happens.
- Delta Variant is spreading. More than 100K hospitalized and people are canceling travel plans. Bad news for Out of home stocks like Airlines, Cruise, and even stocks like Uber.
- Outdoor retail plays doing well be it Dicks Sporting Goods or BGFV Big Five Sporting Goods.
- Astra Space ASTR is down 20% today as the rocket fails to reach space. There is always a risk when it comes to concept stocks.
- I don’t like when a stock does not do what we anticipate. Coupang CPNG Amazon of South Korea stock was expected to take support at 30.76. I will now put a hard stop below 28.4. A close above 31 today will kickstart a bull run.
- Verizon is a Fixed Deposit stock. Verizon currently pays its shareholders $2.51 per share annually. At the current market price, the stock offers a dividend yield of 4.55%. The stock is near lows and looks like a buy and forget stock.
- U.S. pending home sales unexpectedly declined for a second straight month in July. Why? Limited inventory plus unaffordable prices restricting new buyers.
- Aluminum prices are reaching 10-year highs. Following Alcoa
- Will Blackberry finally run? The chart looks promising for now. It’s a good stock to ride, not a buy right now.
- When a stock has to negotiate multiple support and resistance lines, then it becomes difficult to judge what the stock is trying to do especially if it’s a speculative stock? The case with DLPN
- “Wherever we look upon this earth, the opportunities take shape within the problems.” – Nelson A. Rockefeller
New Update: 12:20 pm
EVCM – IPO Breakout and a Buy on pullback. EverCommerce is a software company offering business management, payment acceptance, marketing tech, and customer engagement SaaS solutions for service-based businesses
Do let me know how I can make this section more useful.
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
Leave a Reply
You must be logged in to post a comment.