There comes a time when the market stops falling and despite all negative newsflow, the stocks try to find the energy to move higher. This has been the story of the US market for the last two weeks. There is always a reason. China lifting covid restrictions and anticipation of lower inflation is making bears nervous and bulls hopeful about the future. The consumer price index for May is scheduled to be announced on Friday (the consensus estimate is an 8.2% increase). Here are a few stocks I am keeping a close eye on
FUTU is a Buy
Chinese stocks are making a strong bullish move with Alibaba leading from the front, thanks to solid earnings reports and news of China now open for business post covid restrictions. Alibaba stock is now trading near $99
If we forget the politics in China, Alibaba is the most attractive stock based on the company’s earnings power.
But politics do matter and the stocks rally only when institutions support the stock.
— Deepak Singh (@smarket) May 26, 2022
One more stock that has joined the bullish bandwagon is FUTU, a leading tech-driven online brokerage and wealth management platform. The company has reported solid performance for the quarter ended March 31, 2022. The stock is a buy at this price
Southwestern Energy SWN is making a Textbook move
Natural Gas prices are making record highs and with it companies like Southwestern Energy SWN are direct beneficiaries of this move. SWN made a large candle bullish move and then did price action consolidation with buying opportunity at 6.9. The stock since then has done a vertical move. Here’s how
Surprise Buy post Earnings
The best time to buy a stock is when the street is extremely pessimistic about the company but it surprises everyone with a strong earnings report. The company makes a Gap up move and the base of the Gap becomes the new support zone.
- Salesforce is a buy between 180-184 with stop loss below 170
- Pure Storage PSTG is a buy at the current market price
Pure Storage posted revenue of $620.4 million, up 50% from a year ago, and well above the company’s forecast of $520 million. The enterprise storage hardware and services company continues to see strong demand for cloud-based storage.
Adding WWE as Breakout Play
World Wrestling Entertainment WWE has made a picture-perfect breakout move. It’s a textbook buy at the current market price.
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
Hi Deepak,
Why is the chatbox disabled? It’s easier to start and track a conversation via the chat window.
The market is so dead..there is nothing exciting to talk 🙁
SWN is a buy at Current price?
Yes, SWN is at 100 dma