Bullish Season Bearish Thoughts

Here are the market observations for today

1. November through January, historically, marks the best three-month span for the US equities.
2. Time will tell whether this is right but you need to move in sync with the mood of the market despite scary headlines (Inflation at 30 years high). Headline inflation, including food and energy, rose at a 4.4% annual rate in September, the fastest since 1991.
3. Can disappointing earnings from Amazon and Apple break the bullish spirits? S&P500 and Dow are trading up today.
4. Overall Q3 results have been consistently more upbeat than many of the gloomiest predictions. No wonder the market is willing to ignore a couple of bad earnings.
5. There is a clear momentum in EV space and LCID is leading from the front. QS also has joined the party. QS is a buy below 29.5
6. Higher oil prices have benefited Oil majors. Exxon Mobil posts its biggest profit in seven years and pledges to spend as much as $10 billion on share buybacks. Does that make the stock a buy? Nope. The good news is priced in. 
7. When stocks are rangebound, then doing simple things leads to a great outcome. This has been the story of US Steel X. The company has come out with a brilliant set of earnings and raised its dividend. No wonder traders are excited.
8. Sometimes a stock can test your patience like crazy. GEVO is testing everyone’s patience after making a giant move. Here’s how
9. MTTR is up 17% today and it’s a great business. Here’s the problem: the company expected to announce earnings soon and hence difficult to buy now
10. The market breadth continues to be disappointing as Small cap index IWM struggles to breakout and trading with negative bias.
11. I am taking profit in Uranium ETF URA. Just don’t like the price action.
12. Emerging Market EEM has been under pressure for the last few days. Nobody knows why.
13. I like when a stock does a Gap up on a strong earnings report. Is ABEV up for bullish price action? The price action says Yes. I am not adding it to the trade sheet. ABEV is a Brazilian brewer and seems to be doing well. 
14. Price Action is nothing more than human emotions plotted on a grid. It gives a true picture of the current state of the market. 
15. No matter how skilled you are, never underestimate the role of luck and patience in what happens to your portfolio

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