Nothing to Fear even when there is everything to fear

The market observations for today.

1. Record number of people getting infected with Covid but the US stock market continues to make new highs.
2. “Despite global surges in COVID cases, the markets are reflecting the new reality that COVID is here to stay albeit more on our terms than its” ~ one market analyst
3. There is a relief that despite rise in covid cases, Govt is trying to limit economic damage by relaxing rules on isolation
4. The market is going up but bears are wondering – when will the market take notice of inflation?
5. Chinese stocks are up sharply today. MSCI Chinese ETF +3.3% today. Oversold bounce?
6. Lots of times, stocks do nothing for quite a long period of time. Example: Amazon stock in 2021
7. Apple stock has rallied 28% over the last 3 months in a textbook fashion. Here’s how
8. Pfizer stock made a 50% move over the last 2.5 months in a textbook fashion. Here’s how
9. There is no perfect chart. A stock can make a gap-up bullish move and then break down. Salesforce stock did exactly that.
10. Avoid any stock with these two danger signs: 1. Gap down; and 2. Break down. Here’s why Paypal was avoid all this while.
11. Never hesitate to buy a stock that opens with a huge Gap at a new high. Qualcomm QCOM is up 20% over the last 8 weeks
12. Will Micron Tech MU do its magic and break past the resistance?
13. The theme that will attract investor interest in 2022: Metaverse (a next-generation version of the internet.) 
14. When a stock gap up on strong earnings and pullback due to market correction, then they should hold the gap on way down. RBLX is a buy
15. Roblox RBLX is a popular video game platform that is considered a play on the emerging metaverse. It let users create their own games.
16. “Stocks are bought not in fear but in hope. They are typically sold out of fear.” ~ Justin Mamis

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