The market is screaming May Day May Day

The greatest glory in living lies not in never falling, but in rising every time we fall. -Nelson Mandela

Here are the market observations for today

1. April 2022 was the worst month since March 2020. S&P 500 lost 8.8% whereas the Dow declined 5%. NASDAQ lost 13% 🙁
2. Will May bring some relief? It all depends on what the US Fed signals on Wednesday.
3. SPY is not getting any buying support even near lows. Here’s how its placed
4. “We think the S&P 500 has a minimum downside to 3800 in the near term and possible as low as 3460” ~ Morgan Stanley’s chief U.S. equity strategist Michael Wilson 
5. 2022 has been a nightmare when it comes to bad news from Omicron to Persistent Inflation which got worse with Russia Ukraine war and if that was not enough the lockdowns in China are making things more complicated. 
6. Whenever the market got nervous in the past, it saw the Fed liquidity as a lifeline for bulls but with the US Fed talking about Quantitative tightening, there is nowhere to run to.
7. Nothing got spared in the month of April except the Dollar index. Every risk asset class plunged. Brazil stock market ETF EWZ lost 16%. Even Gold and Silver declined.
8. The stuff everyone is watching: The yield on the benchmark 10-year Treasury note, which now stands at 2.96%. It sets the borrowing rates for everybody.
9. Investing in the stock market isn’t always easy, but it is one of the most effective ways to build long-term wealth.
10. Amazon had its worst day since 2006 in response to first-quarter earnings. The company disappointed the street due to a $7.6 billion loss on its investment in EV Rivian. The stock now trades at 22 month low.
11. The stock of the day – Blue Apron APRN. It’s up 35% on getting a lifeline. RJB Partners committed to the private placement at $12 per share. I will buy at $4 with stop loss below $3.5.
12. AT&T is now a pure telecom play with a dividend yield of 5.5%. The stock is right at Gap support.
13. Spirit Airlines turns down Jetblue’s offer and decides to stick with Frontier Airlines. The stock plunges 9%
14. Verizon stock made no bullish move for years and is now falling as if there is no tomorrow. Here’s how
15. PINS is up 3.5% today. The stock is doing well post-earnings. Can it continue to rally?
16. In a bad market, every stock gets crushed. But it also gives the opportunity to buy a great stock for the long term. One such stock is Enphase Energy ENPH
17. Eli Lilly LLY has broken out to a new high in the current market environment. The stock is a buy on declines now
18. The market keeps changing so fast that it’s difficult to trade. The commodity was a good trade and then suddenly it’s bad. There is a sell-off happening there
19. Brazil EWZ is a play on commodity trade. Just see how it’s selling off
20. It’s not your goals that will lead to your success but your commitment to the process.

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