The Fear Factor: Real Economic Concerns

Here are the market observations for today:

1. Merck Antiviral drug announcement caused a big rally in Home Away stocks on Friday but since the nature of the market: Sell on the rally, that enthusiasm has waned today morning. 
2. This is a brutal bear market where every little enthusiasm gets crushed in no time. S&P 500 down 1.5% today morning.
3. Supply Chain disruptions + Inflation is causing real economic worries.
4. Short NASDAQ trade is gaining momentum. SQQQ ETF +7.5%. There is indiscriminate selling that seems to be happening in Tech stocks. It does not matter what the fundamentals are. 
5. Even Apple has broken down and racing towards 200 dma. Here’s how.
6. When the market starts reacting to bad news, it opens floodgates on the downside. Just see how Facebook has come off from highs.
7. The Oil spill in California is hammering down the Amplify Energy AMPY. The company has shut down its production and pipeline operations.
8. There is value buying happening in Silver ETF. A tail during the last week’s decline and bearish equity market can help Silver SLV stage a comeback. I will be a buyer at the current market price.
9. Higher oil prices are driving up stock prices of Oil and Exploration stocks. No wonder stocks like MRO, OXY, and RIG moving higher but it looks like now too late to enter these stocks.
10. Will OPEC intervene and increase the supply? Will it cause volatility in speculative in Oil and Gas stocks?
11. Uranium stocks are buzzing and the ETF URA is doing well. URA +2.27%
12. What makes me really worried about the health of the market – everything is falling apart. Look at how Semiconductor ETF SOXL has crashed below 200 dma. Will Himax HIMX survive $10?
13. The only relief factor: Silvergate SI is surging. This was an investment idea and its working that way 🙂
14. Breakout to New High is holding CIDM. The stock is up even today.
15. Cut your losses to survive. Never think it cannot go down lower.

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