State of the Market: Chop, Chop and Chop

Here are the market observations for today.

1. Was the sell-off due to the Chinese Evergrande situation a one-day event? People are selling fear now. 
2. The market has made an impressive recovery from the lows. SPY is back to near levels from where it sold off.
3. Inconsistent Price Action has been the defining theme in 2021. I will not blame you if you are losing confidence in price action trading.
4. Price Action has been quite consistent when it comes to the Chinese stock market. Just see how it has consistently declined this year.
5. There is no sign of nervousness for now. But can we say for sure? Should we be worried about this whole debt ceiling issue?
6. Financials XLF are driving the market higher.
7. Airline stocks have staged a decent recovery thanks to the relaxation of travel restrictions on foreigners from November. Hopefully, this will also remove the travel ban from India. Should one buy Airline ETF JETS? I will say skip. It’s just a recovery trade.
8. Hearing Aid manufacturing company Eargo is the target of a Federal investigation regarding insurance reimbursements. The stock which used to trade at $70 in March, now trades at $6.5. The chart
9. I know lots of people wonder why I keep talking about stop-loss because it prevents you from catastrophic damage. 
10. Lucid Group LCID has a nice-looking chart. What’s the story? – US EPA says it can run 520 miles on one charge, 100 miles more than Tesla. Price Action on the daily chart still looks mixed but I will not be surprised if this stock sees a sudden bump on the upside. Bullish chatter is too loud.
11. Has the time finally come to buy Blackberry? Strong Earnings Report + Gap up. If the stock closes above 10.5 today, then the answer would be yes.
12. Is the economy returning to normal? Carnival CCL says that 50% of its fleet will be sailing again by October and 65% by the end of the year. 
13. CIDM is now a Buy and Ride Candidate as it has broken out to a new high. Here’s the chart.
14. The stock that has rallied quite well this month: Matterport. It’s up 30%+. The stock is showing no signs of exhaustion.
15. Uber is returning to profitability this quarter and the stock is holding well. The buy trade at 44 seems to be working.
16. It’s so hard to trade. A perfect trade DVAX got destroyed by one day sell-off and then made a comeback as if nothing happened. Here’s how
17. SmileDirect Club seems to have run into resistance. The company has announced international growth initiatives but traders would be more comfortable once the stock breaks out. The bad news: Stifel Nicolaus analyst Jonathan Block abandoned his bullish stance on the teeth-alignment treatment company, saying there are “more headwinds than tailwinds” on the horizon
18. Strong stocks hold up even in a chaotic market. That’s what Macy’s has done. There are fundamental reasons too. 1. Good earnings;  2. Bullish Upgrades and 3. Strong retail spending. US Commerce Department says that spending on clothing increased by 38.8% in August from the same month last year. I recommended Macy’s last month.
19. GEVO remains a solid clean energy play. It’s a buy even at the current market price and hold if you have it.
20. Every day, recalibrate your mindset towards patience and discipline. Easier said than done

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