Here are the market observations for today
- Dow Jones is up 500 points today. Yesterday, it was down more than 650 points.
- Traders are confused and anxious. When that happens, the market moves up and down with no clear direction.
- Source of worry: Virus or hawkish Fed. Both present real risks to global economic growth.
- The US economy continues to exhibit strength when it comes to the Labour market. Private payrolls increased by 534,000 in November. The labor department will release jobs data on Friday.
- The next big event: US Fed meeting on Dec 15, 2021.
- The Sector in momentum: Semiconductor stocks SOXL. Will GFS join the rally?
- One semiconductor stock that looks set to rally: Microchip MCHP. I am not adding it to the trading sheet.
- I like Ambarella Amba post-earnings. The company makes chips for cameras. I am buying at $223.
- Every semiconductor stock is on move. Another one I like is NXP Semiconductor.
- The stock that’s driving the index down today ~ Salesforce CRM. What happened – Bad Guidance.
- Matterport MTTR and Silvergate Capital SI are turning out to be the Breakout of the quarter. Here’s MTTR
- You never know how low a stock can go once they break down. Here’s one example: Zynga.
- Biotech stocks are very risky plays. Here’s IMGN that looks extremely impressive on charts but should one buy?
- There is a reason I am not a fan of buying lows in a stock that does Gap down movement.
- A volatile market teaches you how to manage risk. It prepares you for a prosperous future.
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
Leave a Reply
You must be logged in to post a comment.