Hawkish Fed Bearish Market

Here are the market observations for today

1. 2022 has not started well for the market. Just see how SPY has declined so far.
2. The top concern right now: Too many rate hikes might happen this year as the US Fed is behind the curve. Goldman Sachs now expects 4 rate hikes instead of 3.
3. High-Interest rates are bad for Tech Growth stocks. No wonder NASDAQ is selling off. This is bad for QQQ
4. Take-Two Interactive acquires Zynga. The stock is up 41%. There is nothing to trade here.
5. Buy the dips in Tech stocks like AMD, NVidia is being questioned. There is a clear transition and new stocks seem to have acquired leadership
6. Ford has started its bull market since early Nov with Gap up and the stock has a long way ahead. The EV pickup truck appears set for success and Ford (F-150) and GM (Silverado) both will be big winners.
7. Brent Crude is at $81 and this is good news for Oil companies be it RIG, MRO, or OXY. See Exxon Mobil XOM
8. When there is fear, investors rush to stocks like Coke KO
9. I love when stocks rally like this. Dell looks like a buy right now. The stock got an upgrade with a new price target of $72. 
10. Is Tilray a buy after earnings? The price action is not that inspiring for now.
11. The new momentum plays for the month of Jan: 1. Viacom CBS and 2. Discovery DISCA. Here’s the rationale.
12. Mobile sports betting app DraftKings Mobile Sportsbook finally went live in New York this weekend. The announcement happened last week but nothing matters when the stock is in a deep downtrend.  See DKNG as an example.
13. KFC launching plant-based fried chicken from Beyond Meat. But we are no longer in a momentum market and hence no impact.
14. Novavax NVAX is one vaccine stock that has consistently disappointed. Has it found the bottom?
15. You’re done, the minute you take anything personally in the market. You need thick skin and mental toughness to survive.

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

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