“Quadruple witching” day

Here are market observations for today

1. Today is a quarterly “quadruple witching” day. [It means individual stock options and futures, and index options and futures, all expire on the same day]. The market should become lighter once the dust settles.
2. September has historically been the worst month for stocks and the month is living up to the reputation.
3. Sell the Strength remains the name of the game. Today is no different. Here’s S&P 500 intraday action this month.
4. Will Apple find support here?
5. CLF is trading at a forward multiple of 6 and stands at 100 dma. Will it hold the support
6. CRM Salesforce did a scary move but now it makes sense. Here’s why
7. Semiconductor stocks are struggling due to technical reasons. The Line of resistance causing the sell-off
8. Himax HIMX broke 200 dma and now racing towards $10. This is just a technical move and there is nothing wrong with the company.
9. The stocks making a solid breakout move: 1. Matterport MTTR; 2. Lending Club LC; 3. Alight ALIT; and 4. nCino. Will ROVR join this list?
10. Safe Bulkers SB has a perfect breakout chart. The stock looks like a buy at the current market price.
11. SmileDirect Club is the new meme stock. One can hope that the bullishness sticks. A very high-risk play. I have no idea whether the luck will play out.
12. Market volatility reflects people’s emotions around buying and selling. When everyone is confused and anxious, you see erratic price action
13. The Sell-off in Uranium stocks looks quite scary. Don’t know how to read it.
14. The market has one more reason to worry: Debt limit
15. OPAD turned out to be pump and dump play. The stock is down 34%. I am glad I booked half yesterday and exited some today. [The problem with speculative growth stock]
16. Silver SLV continues to sink. Now, you understand why it’s hard to buy anything near lows. One should wait for a bounce before concluding that it has hit bottom. 
17. Lots of IPOs happening. The new one coding platform Gitlab has filed for IPO.
18. One underappreciated aspect of trading: How do you build your position in a portfolio? Never have more than 12% locked in one stock. This is the best insurance you can have against catastrophic losses.
19. Make no mistake, the market is a bitch. It will eat you alive if you let it
20. Some days are bad and there is nothing one can do about it. It is what it is.

 

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