The contest is between the Bad News and the Big Picture

Here are the market observations for today

1. In the financial market, there is always something that can scare you but when you focus on the market action, you can look at the big picture.
2. Bad News: The U.S. economy grew at a 2% annualized pace in the third quarter, its slowest increase since the end of the 2020 recession.
3. The extent of the slowdown is surprising but the market knew about the impact of the Delta variant and supply chain constraints. It’s not as if there has been permanent demand destruction.  Growth will resume.
4. The Big Picture: There is a lot of money waiting on the sidelines in consumer savings and checking accounts that I think bodes well for 2022 ~ Simona Mocuta 
5. The news that Joe Biden has reached a deal with Senate Democratic holdouts on a $1.75 trillion social spending and climate bill is driving lots of clean energy stocks (Alternative fuels, Solar, EV) higher. We are well-positioned with Plug, Bloom Energy, and Solar (TAN).
6. The Breakout that looks exciting in EV space: Lucid Motors LCID. I will look to add on declines in the next few days
7. Ford has come out with a brilliant earnings report and resumed its dividend but traders are excited for a different reason. A multi-year breakout on the horizon
8. When a company is doing transformation, then it delivers an incredible return. Lending Club started that journey in August above $22 and now trades at $42.
9. “A lot of the good trades come from just being patient.”
10.  Intercontinental Exchange ICE today reported a quarterly profit that topped expectations, helped by strong gains in its mortgage technology business and robust demand for its interest rate and energy hedging products. The breakout trade is working.
11. Bitcoin ecosystem stocks continue to march higher: 1. Coinbase; 2. Silvergate; 3. Marathon Patent; 4. MQ and 5. HUT
12. Do Good earnings drive stock price performance? The answer is Nope. It’s not the earnings but what the company guides about the future that drives stock price performance.
13. The four major U.S. airlines —Delta, American, United, and Southwest all reported fourth-quarter results that beat estimates. But the stock prices are down. Blame it on 1. Fuel Cost, and 2. Labor shortages
14. Earnings matter. This is what a terrible earnings report has done to Boeing stock.
15. Mental, rather than financial capital is paramount to trading success. Every experience good or bad leads back to the mind.

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