Strong Earnings Bullish Energy

Here are the market observations for today:

1. The most bullish thing a market can do is Go up. Just the price action changes the way you think.
2. The S&P 500 opened gap up today and seems to be holding up well. Trading at 10 days high?
3. Is this good news or bad news? The number of Americans filing for unemployment benefits dropped to a new pandemic low last week, dipping below 300,000 for the first time since March 2020. [Tight Labour market?]
4. AMD has quietly rallied from $100 to $112.
5. The four largest U.S. consumer banks posted another strong quarter this week as the rebounding economy allowed them to release more cash they had set aside for pandemic losses, while sizzling deals, equity financing, and trading also boosted their bottom lines [Source: Yahoo Finance]
6. JPMorgan Chase, Citigroup, Well Fargo, and Bank of America reported a combined profit of $28.7 billion for the third quarter. Large Cap Financial ETF up 1%
7. Plug is a leader of hydrogen fuel cells, mainly used in forklifts in warehouses, and has clients like Amazon, Walmart, and Home Depot. The company is ready with an ambitious growth plan and it looks like the right time to buy the stock.
8. Plug made a big Gap up move yesterday. Today the stock is down 5%. Excellent opportunity to go long.
9. The momentum towards clean energy seems quite strong. California is banning new off-road equipment with small gas-powered engines as early as 2024. It means no gas-powered  lawn mowers, leaf blowers, trimmers, generators, chainsaws, pressure washers, golf carts, and other machines.
10. The value of anything depends upon the perception people have of it — which also changes over time.
11. Breakout to a New High Pattern: Bulls can pray and hope CIDM bounces big from the current levels.
12. Walgreens posted strong earnings thanks to its role in administering vaccines and covid testing. The company delivered 13.5 million vaccinations during the last quarter.  This is one stock that has consistently disappointed. I hope this time it would be different.
13. I will book profit on Affirm AFRM if I bought it long back. The stock has more than doubled over the last few months. Fundamentally there are data points that can cause nervousness in some investors. 
14. Taiwan Semiconductor TSM, the world’s largest chip foundry, has come out with a good earnings report and the stock is bouncing from the support. The company is guiding higher for the current quarter. Everything looks good and one can make a good bullish case for the stock but in the current market environment, I will let it go.
15. We all know when we are wrong. Executing Stop Loss is just an admission that I am wrong. The earlier you do the better it is.

Trade Sheet:

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