“Everything will work out ok” trading

Here are the market observations for today

1. Lots of times there is chaos confusion on the economic news front but traders trade with the mentality that everything will be ok.
2. Global market sell-off triggered by Evergrande’s liability now looks like a distant past.
3. Should the market be worried about Govt shutdown? The US government’s funding is set to expire on Friday, Oct. 1. What does that mean? The US Govt cannot borrow to meet its expenditure requirements. There is a belief that it will be taken care of.
4. There is optimism in the air again on economic recovery as covid related hospitalizations decline. Airline and Cruise stocks are moving higher.
5. US 10 Year Yield is now at 1.48%. Higher yields create pressure on growth stocks. No wonder NASDAQ is down 0.5%
6. Higher Yields and economic reopening is helping Large Cap Financials XLF
7. What a dramatic reversal in AMD stock today. It’s now trading at 10 days high 🙂
8. The small-cap index Russel 2000 is up 1.6%
9. Higher Oil and Gas prices driving stocks like Tellurian and RIG higher. Will I buy these stocks now? Nope.
10. The stock I like: Clean Energy CLNE. The stock looks set to take off and is a buy at CMP. Clean Energy supplies and operates natural gas fueling stations for trucks and other heavy to medium-duty vehicles. 
11. There is interest in Clean energy stocks and hopefully, GEVO will also take off. Today’s move is very encouraging.
12. There is a shortage of coal in Asia. There is a power crisis in China. Will it drive interest in Uranium stocks? UEC is well-positioned to breakout. CCJ is another stock that looks attractive in the Uranium basket at 21. 
13. The ETF to play the Uranium basket is URA. It’s attractive at the current market price. I will recommend it.
14. Silvergate Capital is up 4% today. Here’s why? Morgan Stanley has initiated coverage on the stock with a price target of $158.
15. House will vote on the bipartisan infrastructure bill this Thursday. 
16. Electric Vehicle ecosystem is moving higher with everything from Lucid Motors LCID, RIDE to Fisker Motors FSR to Nikola NKLA to Chargepoint CHPT to Quantumscape QS. The maximum bullish noise is around LCID.
17. Blackberry popped up on earnings but again the stock is showing signs of exhaustion. Hopefully, it will hold this level and not slip below 9.7
18. Breakout to New High is driving CIDM. It is now trading at 2.76. Here’s how it looks on the chart.
19. The speculative stock MRIN is moving higher. It’s up 8% today
20. The market does not exist to oblige us. We have to go with the flow.

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