Meme stocks, Bitcoin and Economic Concerns

Here are the market observations for today:

1. The fundamental law of investing is the uncertainty of the future. How will the market react to tomorrow’s job data?
2. Speculative momentum frenzy today has moved to ANY. Here’s how I saw and here’s what happened.
3. Yesterday, it was BBIG. Is BBIG done with the move? I highly doubt that. But you never know.
4. You never know what stock can do when crazy momentum takes over. This is  how SPRT rallied 6x
5. The next momentum stock to watch CIDM. But there are two problems: 1. Earnings announcement tonight (event risk); 2. Resistance at 2.2. I will wait for the breakout before jumping in.
6. One Speculative momentum growth stock with an attractive chart: Elys Game Technology ELYS. It is an interactive gaming and sports betting technology company. It recently got a sports betting license from the District of Columbia.
7. Meme stocks have acquired cult status and are completely divorced from fundamentals. Traders can trade prices but eventually, fundamentals will matter.
8. AMC trades at $45. Yesterday, a Macquarie analyst has put a fair value of the stock at $6 a share. There is no story here and the fundamental stinks.
9. New auto sales are terrible in the US. Ford said August sales fell 33.1% from last year to 124,176 vehicles. No wonder there seems to be no interest in stocks like Ford and General Motors.
10. Never buy a stock if opens a gap down on earnings. Here’s Chewy stock doing the same on a disappointing earnings report/outlook.
11. Macy’s is doing all the right things when it comes to price action. It’s holding post-earnings gains.
12. I like when stocks do the right thing. Unity Software broke past 115, pulled back to retest, and now rallying again. It’s a great stock to have in your portfolio even at the current price of 132.7. I discussed this stock on August 19 [Point 14].
13. Oil stocks are bouncing back today (RIG, MRO, OXY) but unfortunately, this is one sector that has been making random moves and hence avoid. 
14. MP Materials is a rare earth mining company, and one of the best stocks to play digitization economy. It’s a good stock to invest in for the long term.
15. Buying at lows comes with its own set of problems. The stock near highs delivers better returns.
16. When a stock opens with a gap on the strong fundamental earnings report, follow-through gains are strong. Just look at UPST. I did not recommend it 🙁
17. I am glad I recommended Lending Club LC with a similar pattern.
18. Bitcoin is at $50K. Is the market getting comfortable with the idea of regulation. Two stocks to play crypto boom: 1. Coinbase and 2. Silvergate SI. There can be a trading opportunity in Silvergate Corp
19. The purpose of trading is not being right, the purpose is to make money, and I think that’s my number-one rule. Don’t get hung up on your current positions.
20. Never be hard on yourself. The trading moves in cycles and there are periods that not only drain your money but mental capital too. Step back and think where you are going wrong.

Read Yesterday Daily Dose

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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