Swinging between Fear and Hope

Here’s the market observations for today

1. The job of the market is to make you nervous, question your belief and mess with your brain.
2. In the Financial market, you need an open mind all the time to succeed. The plan is simple: find low-risk entry points, manage your downside, and keep playing.
3. The index that makes me bullish on the US stock market: IWM – Small cap index. It has taken support at the breakout point.
4. It has been a dramatic day of recovery from lows when it comes to the S&P500. Here’s how.
5. Business momentum drives stock price momentum. NVidia and AMD are great examples but when the momentum gets punctured, no low is low enough. Take Alibaba as an example.
6. New Listing Rivian made a new move in just over a week. It seems AUR is following the same script. I added the stock yesterday in speculative growth stocks.
7. Bad day today for Electric, Clean Energy, Marijuana, and Bitcoin-related stocks. 
8. Ford plans to increase its short- and long-term supply of semiconductor chips through a new partnership with Global Foundries. I recommended it at $57 on Nov 15 and the stock is now at $65 and the outlook looks promising.
9. There is a reason I don’t like buying a stock at lows because you never know how low they can go. Look at Warren Buffet backed StoneCo STNE
10. Most of the retail stocks are coming out with great earnings reports and making big moves. The only problem – they lack follow-through momentum
11. When a stock breaks out, then the pullback is an excellent opportunity to add. MTTR is a buy on pullback and at the current market price.
12. When you fall in love with the process of trading well, good things happen.

 

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