Bullish narrative: Earnings matter

Here are market observations for today.

1. “We think investors have been too pessimistic on earnings expectations” ~ Jon Adams, BMO Capital Markets
2. Bullish argument: It was a mistake to assume Q2 as peak earnings season. Q3 is going to be strong, all evidence now points in that direction. Inflation is there but companies have strong pricing power. 
3. S&P 500 has not demonstrated any sign of weakness yet. Here’s how SPY is climbing higher.
4. When the market makes a decisive turn, lots of traders miss the move because they are underinvested and that fuels the upmove as more money is put to work.
5. Gap up trade on strong earnings delivers strong gains. Lending Club now up 50% post-gap up
6. Breakout to a New High is driving CIDM. It was a nervous situation when it slipped to 2.2 but then it has made a grand comeback and is now at 2.92.
7. The race to build the hottest electric vehicle is on. Ford is up 4% today, thanks to its investments in EV. Credit Suisse has now upgraded the stock with a new price target of $20.
8. Bitcoin now trades at an all-time high above $65000 and it’s benefiting the entire Bitcoin ecosystem. Cryptocurrency exchange Coinbase stock has made a smart move over the last 10 days. 
9. Three Bitcoin ecosystem stocks that you can hold: 1. Silvergate Capital; 2. Coinbase; and 3. Marqeta MQ. MQ is a company that will issue visa debit cards/credit cards and allows users to spend cryptocurrency balances. I will look to add on declines.
10. Some trades look so obvious if you look back. Marathon Patent MARA at 200 dma just 20 days back now up 80%
11. HUT has been a great Bitcoin mining stock play. It’s up 9% today.
12. Silver SLV is quietly moving higher while the crowd is chasing Bitcoin. SLV ETF over the last 10 days.
13. Trading commodity stocks is like playing with fire. Sell how Coal mining company BTU Peabody has collapsed over the last 2 days. Reason: China is trying to bring the price of coal down. 
14. Higher Energy price is a reality now and it will keep the interest in Clean energy, solar, Uranium, and alternative fuels/hydrogen economy stocks up. Our momentum portfolio is positioned for that.
15. The path to successful trading is difficult, but it’s not complicated…we complicate it.

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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