Panicking in an oversold market

Here are the market observations for today.

1. It is not the inflation the market is worried about. It is how the Central Bank going to deal with it is the issue.
2. The Federal Reserve will release a statement tomorrow with quarterly projections for the economy, inflation, and interest rate. This policy should set the direction for the market.
3. Meme stocks (likes of GameStop, AMC, Robinhood) are under tremendous pressure now.  
4. When it comes to momentum stocks, cutting losses matters. Because whenever the market turns for worse, it just hammers the portfolio beyond recognition.
5. The casino effect: Winning makes you reckless. And then you discover you’re not as skilled as you believe and the house eventually wins. 
6. Trading has become a nightmare. No matter what you buy, it gets crushed in no time. Take a look at Ford stock as an example.
7. Too much pessimism right now: Is this a Bullish sign?
8. Digitization has moved to a new phase: Metaverse. Large tech companies are working on solutions to erase the boundary between the real world and the virtual world.
9. Apple is attempting to do that by developing Augmented reality and Virtual reality headsets. No wonder Apple stock has defied gravity and rallied 25% over the last 2.5 months despite tremendous volatility in the broader market.
10. Lucid LCID is joining NASDAQ. Whenever the dust settles, this is one company that should be on everyone’s radar as one of the most exciting EV play. Will it find support near 33.5?
11. Steel stocks are moving higher today be it US Steel X, CLF, Nucor Corp NUE, or Steel Dynamics STLD. The problem – none of them have a compelling chart for now.
12. The market is very nervous – even Microsoft stock is down 3.5% today without any reason?
13. There is always a bull market somewhere. One Large Cap idea that is working – CNC. Here’s how
14. “The most important rule of trading is to play great defense, not offense.” ~ Paul Tudor Jones
15. The key to success in trading is to be able to sit on the sidelines until something worthwhile happens

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