2 bright spots

As the markets react to lagging data, a couple of personal bright spots

My brain look tends to look forward but the market’s brain all too often seems to be looking back. Think about all the predictable news-chasing the machines have consistently done in 2022. There may be individual strategists approaching this market with intelligence, but who (and what) ever make up the balance of the markets have reacted heavily to every news event that could influence the Fed, as if on cue. It’s way too predictable. Annoying too.

‘Payrolls’ is among the more lagging economic indicators, especially in its ‘services’ components. But react the markets have done, driving up yields and also Fed obsession for day at least. Then next week comes CPI. Oh how fun. Hey market, listen up. As things stand now the Fed is going to hike another .50% or .75% in September. Enough with the knee jerking obsession routine, okay?

Meanwhile, I have two Biotech related stocks doing well today. DVAX has been a fundamental ‘conviction’ hold each time I’ve traded it in the past and with its earnings beat, that certainly remains the case. The NFTRH target has been a gap fill at 21 (not visible on this chart) since it was added on the June drop to the 50 day average.

TWST is more of a story stock plucked out of Cathie Woods’ Genius Fund. It was added on the late June test of its SMA 50.

They both seem like good ‘Goldilocks’ plays while she remains in play. Thanks in large part to these two I am having a positive day even as a majority of positions are in the red.

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4 thoughts on “2 bright spots

  1. Congrats on DVAX! You’re a better man than me. I sold it for breakeven back in May, figured it would eventually work its way below $8; never bought it back.

    1. Better man and worse man. Let’s see, when was I a worse man? I can’t come up with a particular instance, but I’ve obviously had ’em blow up on me too. Never a fun experience. Seeing two like the above is preferable.

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