It was looking like the markets are set to make a comeback but everything has come crashing down due to hawkish statements from Central Banks. Everything that looked good a week back has turned ugly. Here’s how the Large-cap end of the market is looking.
Twitter is the most interesting stock right now
Elon Musk taking a 9% stake in the company is the trigger. It would not be a bad idea to build a small position in the stock for a long-term horizon.
Musk filed a more detailed financial disclosure on April 5 to clarify himself as an active investor, which means he plans to take on a key role in shaping the platform. This is good news for investors.
The art of Going nowhere
The most difficult market to trade is that lacks trend and heads nowhere. Sometimes, it feels like it’s heading higher and sometimes it feels it’s heading lower but overall it’s heading nowhere.
It can be any stock. Ally Financial is just one example.
Solid Fundamental Story + Breakout = Gains Stick
Economic Sanctions on Russia resulted in interest in Steel stocks. Nucor Corp NUE broke out above 125 on the development. It pulled back to retest it and then has taken off. The gains look intact.
Walmart is attracting the defensive money
Walmart stock has broken out above 152. Should one buy? Technically Yes but in the current market environment, I will skip
Even Johnson & Johnson stock is trading near highs. Walmart is the kind of stock people hide in when they are fearful of the future. The Fearful money is also chasing stocks like Coca-Cola and Pepsi.
The Sector in the Bull Market ~ Utilities – Regulated Electric/Gas
The stocks in these sectors do not deliver spectacular percentage returns but small consistent returns. Take Duke Energy as an example
Southern Company is another example, benefiting from higher gas prices.
People who live in Illinois have two utilities – Nicor Gas (Southern Company subsidiary) and Comed (Exelon Corp)
Fearful Trade: Buy CVS
CVS Health is the leading health solutions company. It has built a base at 99 and seems well set to rally as traders dump growth stocks.
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
Leave a Reply
You must be logged in to post a comment.