The IWM Breakout

Here are the market observations for today.

1. US Fed announced that it will taper but the market took off. Weird right?
2. “The stock market is never obvious. It is designed to fool most of the people, most of the time.” – Jesse Livermore
3. Powell successfully communicated that tapering is not tightening. 
4. The breakout that really made all the difference yesterday: Small cap index IWM
5. The breakout that’s fuelling momentum: Semiconductors. SOXL
6. This breakout in the Semiconductor space looks compelling and if it holds, I will add near 2:00 pm.
7. Will 23andMe ME rally to $13 resistance? 23andMe wants to make cancer drugs using insights from millions of customer DNA samples ~ CEO Anne Wojcicki
8. Bottom fishing is an expensive form of gambling. Should one buy PayPal? Why the stock is trading near lows when the market is trading near highs?
9. It’s always risky to buy ahead of earnings. MTTR made a stunning move earlier this week only to sell off post-earnings. I am still bullish on the company but it will become buy only after the breakout.
10. Will FUBO breakout post-earnings? The company will announce earnings next week.
11. Earnings Gap up is always a good sign. QCOM stock just did that along with SSYS. I have both stocks in the trading portfolio. SSYS chart should hold?
12. When a stock breaks out post-earnings, then it becomes an automatic buy. One can make a solid case for ETSY
13. AMD is a true Leadership stock now. It continues to march higher and now trades at 135.
14. This is how Sell the news works. Ocugen stock rallied in anticipation of Covaxin and then sold off post approval.
15. You’re going to learn more about investing on Twitter and YouTube, than you will in a college course.

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