Bullish Consumer Confidence + Solid Earnings sustains Bullishness

Here are the market observations for today

1. When you plan how you’ll respond to price action ahead of time, trading is far less stressful ~ Michael Lamothe
2. The consumer confidence in the US rose for the first time in four months in October, even as inflation expectations reached a 13-year high. It means more spending and that’s good news for US companies.
3. “The consumer has got tons of cash right now, so they don’t mind the fact they’re raising prices on us. … That’s why profits are going up” ~  Payne Capital Management
4. The index that matters: IWM Small Cap Index. Will it breakout above 234 because if it does, there will be insane momentum.
5. Should you buy a low PE stock or a high PE stock? The answer is it does not matter. You should always buy an uptrending stock.
6. When a stock sells off due to bad fundamentals, then no matter how attractive it looks on Valuations, traders keep dumping the stock. Example – See the Intel Chart
7. Great Businesses + Good Charts = Amazing returns. AMD is now at 126. AMD is set to earnings release today.
8. The market loves this idea: Crypto-enabled Credit Cards and Debit Cards. Yesterday, BKKT surged to $35. Today, MQ is moving higher. It needs to break 32 to attain momentum
9. CIDM Breakout to a New High is testing everyone’s patience. When will it take off? The stock remains a hold as long as it trades above 2.2 on a closing basis.
10. Breakout to a new high eventually leads to bigger returns. One can hope that MGM will pick up momentum? MGM Resorts is a global entertainment company (casino, hotels, conferences, restaurants, live entertainment, and sports betting) 
11. The IPO CYN is on move. Here’s how
12. One earnings I will be watching tomorrow: Lending Club LC. The stock has done well so far. Will it surprise again?
13. The market is very brutal when companies deliver disappointing earnings. This is how Canon CAJ is reacting to the earnings announcement.
14. Sharp pullbacks in some recent leaders today: AFRM and UPST
15. Trading teaches you to become a better decision-maker. It helps you discover how you react to situations of extreme anxiety.

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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