Focus on Stocks, not on indices

Here are the market observations for today:

1. Traders don’t trade stocks, they trade emotions. How you think defines trading performance.
2. The market has started the week with a bearish bias. This is how the morning looks for S&P500.
3. The story of the market for few months has been rotation, choppiness, and inconsistency. And the biggest challenge has been how to ride small caps, growth names, and speculative names.
4. What should one do: Stay focused on the stock-picking, and don’t worry too much about the indexes.
5. The real momentum will come whenever the Small-cap index ETF IWM breaks out.
6. Speculative momentum seems to be in AEHR for now. I recommended it on Friday. The stock is up 12% today on the back of new order flows.
7. Two speculative stocks where traders still have lots of hope: 1. BBIG and 2. PXLW
8. What can we learn from ANY sudden collapse? The importance of taking windfall gains. Even if you book partial profits, you save yourself from market chaos.
9. Novavax is finally breaking out above 260. The move it started with a gap up, then collapse and recovery is leading to momentum.
10. Bitcoin is now a legal currency in El Salvador. But it seems like it’s playing out like Sell the news for Bitcoin plays. Bitcoin mining stocks MARA and RIOT are down 8% today.
11. Will Silvergate Capital (A bank that settles crypto transactions 24*7) breakout above 124? If yes, it will be a buy.
12. Momentum theme: Uranium stocks. Most of them have run up so much that it’s hard to buy at current levels.
13. When stocks break out, they rally like this and can be extremely rewarding. 
14. nCino is driving the digitization of banks. The stock looks like a strong buy at the current market price.
15. Warren Buffet top 2 holdings: 1. Apple and 2. Bank of America. Both are up today
16. Large Candle move drives strong gains. Netflix rally is a great example
17. Walgreens made a large candle move last week. Will there be a follow-through gain?
18. There are trades that work and then there are trades that don’t work. One is better off cutting losses in them
19. The best traders tend to be psychologists rather than mathematicians
20. Read Yesterday Daily Dose

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