Financial Market always tells you something and all you have to do: Read signs and take Notice of it.
S&P500 continues to trade near All time high with negligible volatility (many call it Complacency)
But is that the case with individual stocks. Let me share few examples.
Example: Disney stock looked attractive in the month of June 2017
Disney is a technical buy around current market price. The dip buyers should come and take the stock higher pic.twitter.com/S4zigR1gc6
— Deepak Singh (@smarket) June 22, 2017
But here's the state of Disney stock 6 weeks later: struggling to hold an important support level. Remember it did bounce to 110 but results seems to have pulled the stock back
The stock has not broken any support decisively and hence it continues to be BUY on decline but yes it's painful period for the stock.
Example: General Electric breaks down
Why General Electric stock appears to be compelling Buy? https://t.co/lZoeZKLI9p
— Deepak Singh (@smarket) July 12, 2017
Logic back then: The stock is at Ultimate Support of 200 week moving average
But the market did not like GE results: stock broke down and Stop Loss got hit
Thank God: AT&T doing well so far so good
AT&T stock for Buy Low and Sell High Investors https://t.co/knabYERWam
— Deepak Singh (@smarket) July 21, 2017
Logic back then: Stock trading near support + Attractive Dividend Yield
AT& did bounce and is now trading at 38.3 but again very reasonable move
We are not in a mad bull market where no matter what a company does, stock rallies like mad. It's a healthy market where stocks are getting rewarded on their own merit. Nobody knows the future but it's not a market where stocks are making a one way move no matter what they deliver. Aisa naheen hai
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. 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