Bullish Consolidation Scary Thoughts

Here are the market observations for today.

1. The Fundamental headline [Inflation, Slow growth and Supply Chain issues] with Fed ready to taper is making lots of people nervous. [Feeling]
2. The Price Action continues to be bullish when it comes to the large-cap index. The Big companies continue to surprise and keep S&P 500 hold bullish levels.
3. Today, it was the turn of Microsoft, Google, Coke, and McDonald to surprise on both the earnings and revenue front.
4. State of Corporate earnings: As of now, 38% of the S&P 500 has reported earnings and out of them 83% have topped earnings expectations, while 79% have exceeded revenue estimate
5. You’ve got a very price-insensitive consumer because we’ve got lots of cash. Wages are going up. And companies can keep essentially raising their prices as their costs go up [Why do Corporate earnings continue to surprise?]
6. AMD exceeded expectations and the stock bull run continues post-earnings 🙂
7. I love when a company with a great future delivers on earnings. Enphase ENPH is one such stock. It’s a buy between 210-217.
8. The stock is driving up Solar Energy ETF TAN. Everything is moving up from SPWR to SEDGE to RUN.
9. The small-cap index continues to disappoint despite S&P500 trading near highs. The resistance causes a sell-off.
10. Selling from resistance always scares me. Here’s how Ally Financial investors discovered – brutal sell-off from 56
11. Ally Financial, a leader in Vehicle finance is planning to enter the credit card space with its planned $750 million acquisition of Fair Square Financial. The market does not like it.
12. Can one hope against Hope when it comes to Redwire Corp RDW. It needs to close above 13.5 for momentum
13. Apple privacy law is hitting every social media stock. Snap broke down a few days back and today Twitter is down 9%
14. The market is excited about crypto-enabled credit cards/digital wallets. No wonder MQ has surged to a new high. This is a stock to hold.
15. In the short term, you are as good as your intensity. In the long term, you are only as good as your consistency. – Shane Parrish

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