US economy is in recession

The nightmare is not ending. 2022 is turning out to be a disastrous year for equities. The Atlanta Fed’s GDP tracker now puts the second-quarter growth at a negative 2.1% which means the US economy is technically in recession. The companies will announce earnings this month and it needs to be seen how consumer spending slowdown and inflation is going to impact earnings. There is no conviction among buyers. The Sellers have run out of energy. As we head into the long weekend, here are some stocks and sectors that deserve your attention. 

Semiconductor Stocks continue to sink

SOXL is a leveraged ETF on the Semiconductor Industry and the stocks of these sectors continue to sink and with it SOXL.

AMD has come down to support levels. Will the stock hold this level or sink below it? It needs to be seen. I will buy AMD with a stop loss below 69.

There is a big interest in Speculative Biotech stocks.

The ETF that’s moving higher is LABU

Big Pharma and Biotech stocks are doing well. The leadership is with Eli Lilly LLY. Belus Health BLU is a breakout buy.

Why FNKO is a buy?

Strong Earnings + Analyst Upgrades:

Funko did sales of $1.03 billion in 2021, up 58% year over year, and earnings of $1.42 per share. For 2022, management projects net sales between $1.275 billion and $1.325 billion and EPS to range from $1.80 to $1.90 

The stock Gapped up few days back. It then filled the Gap and the stock has resumed uptrend.

Other Opportunities

SWN has come down to support levels and bounced. SWN is a buy

Chinese stocks have been doing well like BABA and FUTU. Now Trip.com is a buy

When a stock breaks out to a new high on strong earnings growth, then the stock becomes buy. CHEF is a buy

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