The US market: Strong Market Hammered Portfolios

Here are the market observations for today:

1. I know I don’t know. That’s how I can describe the US market for now.
2. The Bull market continues in the top 6 frontline Tech stocks. Just see the chart of Apple. The rest of the market is in a terrible bear market.
3. Inflation soared 6.8% year-over-year in November to the highest rate since 1982. This is a problem that cannot be ignored now.
4. The Federal Reserve holds its two-day meeting on Dec. 14 and 15. Will it speed up end-of-bond purchases and give a clear timeline of rate hikes.
5. How will the market react to the Fed decision: +vely thinking that the US Fed is working on the issue or -vely thinking that easy money era is over?
6. A large segment of the US stock market is in a terrible bear market. Some of the stocks are so oversold that one cannot rule out a relief rally even if that looks odd.
7. I will be inclined to buy if the market remains firm even next week because some of the stocks deserve to rally.
8. Will Ford rally another 10% over the next weeks. The chart says Yes. 
9. Momentum Trade: Academy Sports & Outdoors ASO. There is strong business momentum and after today’s earnings – the stock has the potential to surprise on the upside. I will be a buyer at 46.6
10. Two Large Cap stocks that got big earnings boost today: 1. Oracle and 2. Broadcomm.
11. Once the easy money music stops, some stocks can fall a lot. AMC is one such stock. 
12. There is always a Bull market somewhere. Is this stock a buy in a Large-cap portfolio?
13. Nothing gets spared when the market is in free fall. Lending Club made such a bullish move and then gave it all up 🙁
14. Stop Loss matters.
15. There’s nothing wrong with being wrong. To err is human. It becomes a problem when you choose to stay wrong. To deny error is willful blindness. ~ Adam Grant

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