Anxiety Factor: Push and Pull

Here are the market observations for today:

1. Bad news can make the market participants anxious and result in a panic sell-off, but usually, they turn out to be noise.
2. Trading is a high-performance endeavor. It tests you like no other thing. Never lose your mind.
3. Today, select stocks are up sharply while the index continues to show signs of nervousness.
4. We’re going to have this push and pull where we get these headline numbers that shock the markets a bit, like with inflation yesterday ~ Yung-Yu Ma
5. The market has no appetite for bad earnings. Small disappointment and the stock is getting dumped. See Disney
6. I made a bullish case for UEC last month, thanks to breakout and this is how it has played out.
7. The safest stocks are the stocks that belong to a theme that the market loves. That’s the case with Plug Energy, Bloom Energy, and FuelCell FCEL. All of them are up big today.
8. The entire EV ecosystem is on fire. There is huge interest in EV stocks. That makes BLNK and CHPT an interesting play.
9. Rivian IPO is now driving up valuations of other EV players like LCID and FSR. Here’s how FSR looks on the chart
10. When a stock breaks out, institutions also get excited. Silvergate Breakout – JP Morgan has come out with a buy rating on Silvergate and a target of $300 🙂
11. Doordash breakout makes the stock a buy.  Doordash is the leading provider of meal delivery services and now expanding into other delivery services. It’s delivering for Walmart and now partnering with Dollar General.
12. When it comes to breakout – Patience matters. This is how Unity Software has worked out. Just see how it first did nothing and then just took off.
13. SSYS should hold this line and if it does, then it can take off.
14. I added PUBM today at 39.7. The chart looks compelling. There is strong earnings momentum and it seems the market likes it. (Digital advertising play)
15. Trading is playing with fire. One bad result and the stock can collapse like this. See PSFE
16. It does not matter how often you win if one loss wipes away everything. Hence, never invest more than 10% in one stock under any circumstances.

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