SPY Pause NASDAQ Sell off

Here are market observations for today

1. SPY is going nowhere (down 0.2%) but Tech stocks are falling off (NASDAQ down 1.0%). 
2. There’s been lots of discussion about runaway inflation, the Fed being behind the curve. Everybody is confused about how this would play out. 
3. Yields are moving higher and benefiting banks but leading to a sell-off in Technology stocks.
4. Is the Street turning bearish on big established names? Two downgrades today – Salesforce down 5.6% and Adobe down 5%
5. The money is moving in cyclical stocks – Oil, Metals, and Uranium. Stocks like CLF making a big move.
6. Steel stocks are on fire and I am adding STLD to the portfolio. 
7. EEM is on Road to nowhere. 
8. There comes a time when stocks make a sharp U-turn. AT&T has done the same after forming a double bottom. There is business momentum driving the stock. It added 3.2 million post-paid subscribers.
9. Intel is up 15% since the middle of December. But I will give the stock a pass. Here’s why
10. Ford has doubled in value over the last few months and it seems the momentum would continue.
11. I am adding General Motors as a Long term Investment idea. Here’s why. State of Large Cap Portfolio
12. There is reason to be excited about Toyota Motors. Sound fundamental story + Price Action but I will give the stock a pass due to low volatility.
13. Stop Loss matters because you never know how low a stock can go. See Robinhood
14. The financial markets are like a fight. You have to get up, ready to fight, every day. You don’t get to take a break from the fight unless you just sell everything and go home.
15. You can survive this game only when you have the mental strength and no emotional attachment with the stocks.

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