The market always surprises when you are least prepared for it. In a bad market environment, nothing works, and then suddenly the market changes, and everything starts working again. The US stock market has once again started rewarding long trades and here are a few interesting charts and opportunities to keep an eye on.
Southwestern Energy SWN – The trade that’s working
SWN had a picture-perfect chart and opportunity trade at 6.8 and the stock did not disappoint. The trade is doing all the right things and this is one trade I would like to ride as long as it does the right things.
Testing the environment with Zoom and Tesla
I always test the market on how it’s moving and rewarding trades. I trade small and if the trades start working then I turn aggressive.
In a bad market, good stories get ignored.
I like Zoom at a price of $95.5. Here’s why:
The hybrid work model is a new reality. Zoom has a future beyond covid.
The company continues to deliver strong growth.
Revenues +12% to $1.07 billion
EPS for the last quarter at $1.03— Deepak Singh (@smarket) May 24, 2022
Zoom is now at $107 stalled below the resistance of 110 and I have booked a profit here. I will add again on a breakout above 110. Tesla was another trade I tweeted and the stock is up 15% in 1.5 days
Elon Musk’s new Twitter acquisition strategy is extremely +ve news for Tesla.
It seems Musk does not want any margin loan backed by the stock price of Tesla for the deal.
I expect Tesla stock to rally now.
— Deepak Singh (@smarket) May 26, 2022
Why do I like WeWork?
When a stock makes a well-defined breakout on the chart, then one should look to add on declines. WeWork is a buy on the decline around the price of 7.4-7.6 zone.
The stock first made a big move on May 12, thanks to an earnings report and after stalling at resistance has done a huge breakout today. It seems the stock has some distance to run. I will add near 7.6 with stop loss below 6.95.
Macy’s Earnings with Gap up makes the stock attractive
Macy’s stock made a big Gap up on the earnings report. The retailer reported better-than-expected profits and raised targets for the rest of the year. The stock is a buy at the current market price with stop loss below 20
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.