Recession overturns Commodity boat, bullish traders jump on Tech bandwagon

Here are the market observations for today –

1. When everybody sits on the same side of the boat, the boat overturns. The consensus trade: Buy Commodities and Sell everything else has collapsed. 
2. Crude Oil and Natural Gas was the trade that worked in 1H CY2022 and now with the US economy staring at recession, investors have dumped Oil and Gas stocks. SWN is at 200 dma now 🙁 I will put a stop below 5.6 if I have it. 
3. The market makes a violent move in the direction of surprise. Around the middle of June, US 10-year T Yield was near 3.5% and now due to hawkish Fed and recession fears, it’s down to 2.8%. No wonder Tech stocks have staged a comeback. 
4. Today NASDAQ was up 1.75% while Dow Jones closed down 0.42% and S&P500 closed up flat. There was no buying anywhere else. The emerging market was down too. 
5. The ETF that has become a play on speculative growth stock ARKK rallied 9% today. Is this set for some relief rally?
6. AMD is a leadership stock and the stock found support right where it was expected. The other stock that looks set for a meaningful bounce is SHOPIFY.
7. Lots of Speculative Growth stocks bounced big today but the stock leading from the front – is Roblox RBLX. The stock has made a stunning recovery over the last 10 days. I am hoping for a similar move in the 3D content-creation platform Unity Software U.
8. There has been a sudden interest in speculative Biotech stocks for over 2 weeks now. Today, Leveraged Biotech ETF LABU was up 17%. Lots of Biotech stocks made a move. I recommended BLU last week.
9. Speculative fun and game seem to have started again. No idea why FFIE rallied 48% today? Will ONEM be next? There is a takeover interest in One Medical. 
10. Will momentum be back in the market? The stocks I like made good moves today – 1. FNKO 2. CHEF and 3. XXII

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