Every rally is being sold into

Here are the market observations for today

1. September is bad for the stock market and the market is living up to that reputation. Every rally during the month has been sold into.
2. Not counting today, the Month to date Dow Jones is down 2.7%. S&P 500 down 3.6% and NASDAQ down 4.9%
3. SPY has broken support and heading towards Sep 20 lows. Here’s how it looks on the chart
4. Tech stocks have suffered badly over the last week. Blame it on rising yields.
5. Will Apple stock defend the level of 141? Here’s the chart. What’s the next trigger: Apple earnings on October 28.
6. An extremely bad earnings report from Bed Bath & Beyond is leading to a sharp sell-off in all Retail stocks. Macy’s stock is down 9% for no fault of its own 🙁
7. When things are bad, downgrades follow. Bank of America downgraded Kohl’s stock and this is the reaction
8. We are in an interesting market where fundamentals change their nature overnight and with it the price action. One day Tech is good and the next day it is bad. No wonder, lots of traders gravitating towards random speculative stocks.
9. CEI has been the lottery trade of September. The stock is up 8x this month. No wonder speculative traders lookout for new high-risk ideas. Is GROM the next lottery trade? 
10. Red Cat Holdings RCAT made a big gap-up move on winning a 5-year contract with NASA. The momentum looks solid.
11. Speculative trades are highly risky and you can lose everything. There is no logic behind such moves.
12. ONDS did not make a follow-through move. It’s hard to comprehend what happens next. It’s a drone company.
13. Volta, an EV charging company was making all the right noises and the move and then all of a sudden today, it is down 27%. Nobody knows why 🙁
14. Please be very careful before making a speculative trade. You can lose a lot. A small position size is the best defense.
15. No matter how good the story is, the stocks need to clear resistance first else they sell off just when you want them to take off. Example: Lucid Motors LCID
16. I am watching Indie Semiconductor as it can break out today. If it does, the stock can do wonders next month.
17. Is Himax Tech at an important line of support. The chart says Yes. The stock should hold 10 and one can buy with a stop loss below 9.
18. Lordstown Motors RIDE, the electric truck maker, is up 5% on news that it might sell its Ohio factory to Taiwan’s Foxconn Technology Group. Is this the reason to buy the stock? I will say no considering the market reaction.
19. Uranium stocks are doing extremely well today. 
20. “In the business world, the rearview mirror is always clearer than the windshield.”

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