Correction or Shakeout: The Volatile month so far

Here are the market observations for today

1. October is considered a Volatile month and it is living up to the reputation.
2. Covid scare is taking a backseat but new sources of worry have emerged: 1. Inflation; and 2. Supply Chain driven shortages. The real fear is that the combination of wage inflation and shortages will drive down margins and topline. Slower Earnings growth?
3. When the market is this volatile, it’s very hard to comprehend what the market is trying to do: 1. Setting a stage for bigger correction; or 2. Throwing us out of good trades
4. There is always a Bull market somewhere. One can clearly see immense momentum in Oil and Gas stocks be it MRO, OXY, DVN. Unfortunately, it looks a little late to ride it.
5. Ford and General Motors have announced a massive investment in Electric Vehicles and it seems the market is excited about it. Again the movement is random and sudden, so these are good stocks to ride but cannot be bought here. 
6. Apple is set to announce earnings on October 28th, 2021. It seems like 200 dma will converge with price then. I see the stock doing nothing this month.
7. Uber’s promise to return to profitability next quarter is driving the stock higher. The stock is headed towards $52.
8. I like ICE Intercontinental Exchange as it’s about to start a new bullish journey. Thanks to Breakout to a new High. The company is a play on Climate change as it offers global environmental products. The reason for excitement now is the increase in volumes across all products. It’s an investment idea.
9. When a stock makes a large candle move on exciting business announcements, then it does attract investors. MRVL Marvell is bullish on its data infrastructure business and the analysts have upped the price target to $85. Here’s the MRVL chart
10. The Breakout in Silvergate Capital seems to be driving the stock higher.  Here’s how
11. Two Clean Energy stocks are bouncing but the choppy market has made the price move inconsistent: 1. Clean Energy CLNE and 2. GEVO
12. There is renewed interest in Clean energy stocks especially Hydrogen economy stocks. Over the last week – Bloom Energy and Plug have got upgrades. Here is one problem: Charts are in mess and the overall market environment does not inspire confidence. State of Plug
13. Everybody is hoping against hope that Himax Technologies HIMX will hold the level of $10. The Semiconductor stocks should bounce.
14. CIDM is testing the patience but the price action continues to look bullish and the stock is a hold. CIDM – Breakout to a New High play.
15. Gap up on earnings leads to strong follow-through moves. Lending Club LC has done a good job so far.
16. The market tends to fool the majority at a turning point. I don’t know about others but I definitely have got fooled multiple times.

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