Geopolitics drama and Earnings surprise

The market is nervous. This is no longer news but a new trend in 2022. Year to Date:

• S&P 500 -8%
• NASDAQ -13%
• Bitcoin -13.9%

It looked like things are getting better but then tensions are up again after Ukraine accused pro-Russian separatists of attacking a village near the border. The Good news is that despite the market decline, it’s holding up the inflation + end of pandemic trades.

When the market does not like a sector, then Earnings usually disappoint

Yesterday it was RBLX, today it is Matterport MTTR, and Fastly FSLY. Earnings are not bad. It’s just that the market wants it to be way better than expected.

Fastly FSLY used to trade at $120 a year back and is now down 80% from highs. The company came out with a decent earnings report but seems cautious about the future and the market just does not like it.

If the market loves the sector, then Earnings surprise leads to more momentum. Example: SBLK

I covered SBLK on Feb 10 2022 knowing fully well that the earnings are expected on Feb 16 and see what happened

The real bull market is in Gold, Silver, Coal, Oil, and Uranium

Gold, GDX, AG and BTU seem to be doing well. Will CCJ catch up?

CCJ Uranium mining company appears to be at support levels. The company did not come out with great earnings but it seems it is on the right profitable growth path and the market loves it. There was a big Gap up move and the stock has a support base at 21 levels.

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