The market recovery: It’s bumpy

The market observations

1. The Fundamental issues are real and hence it’s normal for the market to be volatile as traders swing between Hope (soft landing) and Fear (Earnings impact).
2. U.S. stocks sold off sharply from the highs today. Blame it on Apple as the company announced that it would slow hiring and curb spending next year to prepare for a possible recession.
3. It’s very difficult to trade when the market is doing an oversold bounce because you just don’t when it will end.
4. Expectations: The US Fed will raise rates by 75 bps in the next Fed meeting later this month (July 26-27).
5. Earnings still expected to Grow: S&P 500 companies are expected to post a 4.2% year-over-year increase in second-quarter profit. 
6. Do Earnings matter? IBM delivers another solid earnings report. Will the stock ever break out above 145?
7. Recession or no recession, People will buy Healthcare plans. With nearly 27 million members enrolled in its medical, dental, vision, and Medicare coverage, Humana is one of the largest health insurers in the world. No wonder Humana is trading at an all-time high.
8. When a stock reacts positively to the earnings reports, then one should follow to look for a trading opportunity. Following Citigroup
9. The stock with the best chart: is Li Auto, as the stock consolidates near highs. Usually, such stocks just take off vertically. Will it?
10. The only stock that makes sense right now: SWN

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