Inflationary Chaos Tech trouble

Here are the market observations for today

1. Inflation is the dominating theme that’s driving the markets. With the US Fed clearly stating its objective to fight inflation, its not good news for Tech growth stocks.
2. Don’t buy the dips when it comes to growth ETFs like ARKK. It’s down 4% today. This has been my recommendation this year.
3. 2022 has not started well for stocks. It’s not all bearish but extremely volatile.
4. Today the market started ok but is now in grip of sellers. Here’s how the S&P 500 intraday chart looks like
5. The nature of the market has changed and one is better off avoiding technology growth stocks. Just see Large Cap Financials ETF XLF is trading at all-time high whereas Technology stocks ETF XLK is struggling. 
6. The market is getting ready for post covid world. Look at Airline stocks ETF JETS. It made the double bottom and then bounced with intensity.
7. Speaking of Airlines, Boeing 737 Max is returning to services across the Globe. The stock has the potential to rally 20% over the next two months. Investment buy?
8. Cruise stocks like Carnival Cruise and NCLH are also up sharply today.
9. Ford is in a true bull market. It’s up 4% today.
10. It’s great to see Discovery and Viacom CBS making a bullish move. 
11. Gap up Earnings play trade is working for Micron Tech MU
12. Should one buy KB Home as the next Gap up earnings trade? KB Home earned $1.91/share as against the expectation of $1.76/share. There is a huge demand for new housing and hence companies like KB Home are expected to benefit from it.
13. One speculative play BTCS has doubled in value over the last two weeks on the idea of Bividend (dividend payable in Bitcoin). I did not recommend it because the market has been brutal to such names but this one survived.
14. This is not a market that rewards news flow for more than a day. Example: DKNG. DraftKings launched mobile sports betting in NY last Saturday but see what happened to the stock.
15. A stop-loss helps you deal with a problem in its smallest state before it grows bigger and becomes ruinous.

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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