Revenge Travel is for real and most airline companies continue to confirm the trend. This was known but what got the market excited is that despite inflationary pressures and higher fuel costs, airline companies are easily able to pass on the costs. Today, the ETF representing Airline companies JETS is up 5%. I recommended JETS as a buy a few days back and it seems now the trend is gathering momentum. But what about the broader market – well it continues to struggle. The early morning excitement has disappeared with the pick-up in selling pressure.
Spotify: New age stocks continue to make new lows
Sometimes you wonder how much pain one can take. Spotify stock used to trade at $300 just six months back and is now at $116.
As you can see in the chart above, the stock broke down below 205. It pulled back and then sold off and in just 2.5 months, the stock is at $116. Today, it broke the previous low on news that Obama will not renew its exclusive podcast deal with Spotify. When the trend is not in your favor, it’s dangerous to do bottom fishing.
PLUG ~ Good news has become a Selling Opportunity
Price Action is just brutal in new area stocks. PLUG did a huge Gap up on news that it got a big order from Walmart but it looks like that was an opportunity to sell and not buy – classic bear market action 🙁
Boston Scientific makes new high
When a stock makes a new high, it starts a new trend and as a price action follower, one should look for a dip to add the stock. Boston Scientific BSX has done exactly the same and one should look to add the stock on declines near 46.5
Boston Scientific (BSX) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2022 on April 27, 2022. I am not in favor of buying ahead of earnings but will be keenly watching for entry post-earnings if the breakout holds.
Steel companies on run – Strong Earnings fuel momentum
Steel has been one of the best performing sectors in 2022. Today Steel Dynamics STLD came out with super impressive earnings. The earnings per share surged 187% to $6.02, beating by 36 cents. Revenue grew 57% to $5.57 billion. STLD has made a picture-perfect breakout move of 40%
Most of the Steel companies have come out with brilliant numbers and one can hope CLF will also come out with excellent numbers and fuel the momentum. This is one stock we hold.
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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