The Fear Variant

Here are the market observations for today.

1. There is panic in the market, and the panic is not about the virus but fear of new lockdowns, restrictions, and impact on global economic growth.
2. Omicron variant sounds scary but this might be bullish for stocks. Here’s why?
3. One thing is for sure that the pandemic and variants remain big risk to the market and one should be prepared for lots of volatility over the next few weeks. Just see how chaotic last few days have been.
4. Nobody is talking Black Friday shopping performance. The mood has changed. 
5. Tech stocks are up today. Here’s why: The market can now argue that the US Fed would either pause or delay tapering.
6. Travel stocks have taken a big hit, just when they were ready to make a comeback. Here’s Carnival Cruise CCL
7. The Bull market is in Semiconductor stocks. Everything from Semiconductor ETF SOXL and stocks like AMD, NVidia to QCOM is up. 
8. When the theme is working, stock selection becomes easy. No wonder GFS Global Foundries has done well.
9. AMD is now near all time high following a report that Tesla has started using a new AMD chip in Model Y vehicles in China.
10. When a stock breaks out and does all the right things, then eventually it does rally. This is the script MTTR seems to be following.
11. The other breakout that seems to be holding the chart is Silvergate Capital SI.
12. One day move counts for nothing if there is no trend at play. Twitter CEO Jack Dorsey steps down and this is how the price action played out.
13. Stop Loss matters. When the market loses interest in the stock, you have no idea how low a stock can go. See Robinhood price action.
14. In the market, discipline is golden and impulsivity disastrous.
15. When it comes to trading, the best kind of success is continuous, and not occasional.

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