The US market has settled down over the last 2 weeks. I like the price action in individual stocks. Some trades have started working. It’s premature to say that we might be out of the bad phase but the market has been so bad for so long that even small rallies now look so good. The trading environment is no longer that hostile.
The China Factor
China is considering a $220 billion stimulus and Chinese stocks are reacting +vely to the news flow. Chinese stocks seem to be doing well with
- Alibaba set to breakout above $120 [Buy]
- FUTU consolidation seems to be over and the stock should take off again [Buy]
- Trip.com has filled the Gap and is set to rally. [Buy]
Bouncing from Support
- AMD has bounced 6.5% from the base of 73.5 and is now at 78.87. [Hold]
- SWN is bouncing from 200 dma [Hold]
- Shopify is bouncing from support [Hold]
- Unity Software is bouncing from support [Hold]
Breakout and Leaders
- CHEF broke out on a strong earnings report. The stock looks extremely attractive on charts. [Buy]
- FNKO and BLU breakout momentum sustains [Hold]
- Speculative Momentum sustains in ONEM [Hold]
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
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