Cyclicals and Smallcap showing strength

The market is moving up and down but one good thing that happened today – extremely good price action in cyclical and small-cap stocks.

Should you buy Pfizer?

Pfizer stock made a new high above the levels of 50 in Nov 2021 and rallied to 60. Since then it has pulled back and twice tested the levels of 50. Today, the stock has reacted negatively to the earnings report and is down 3.7%. But here’s the good news – even during the sell-off today, it did well to hold levels of 50.

In a Value investment environment, one can make an investment case for Pfizer. On a big picture basis, the stock is right at support and buy, but what makes the situation complex – is a bad reaction to the earnings report, but if the stock closes above 51 levels today, one can attempt a long position with a stop loss below 48. 

The new market where good news is sold into

There are two companies that make sensors for autonomous cars – 1. Luminar and 2. Velodyne Lidar VLDR. In the last twenty days, both these companies have got strategic investments but this has not resulted in any stock price gains for investors.

Luminar LAZR secured a deal with German luxury-car stalwart Mercedes-Benz – but see what happened.

Today, there is news that VLDR is getting investment from Amazon – but again the news is being sold into

We are in a different market environment where good news is getting sold into.

Phunware is making an interesting move

It is a midterm election year and Phunware made a Gap up move on news of a strategic political partnership with Campaign Nucleus. I like the way stock is shaping up so far. It’s a high-risk play

Home Away stocks making a comeback

Airline and Cruise stocks making decent gains but again very hard to trade. Today Oil stocks are giving up gains. 

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