1/17/23 A Short Week: Banks, Bitcoin, & Bulls


On Friday, markets opened on a weak note, falling as much as 1% after what appeared to be weak earnings from the big banks.

Buyers quickly scooped up the discounts, and by the close, all four major indexes ended solidly in the green…

  • Dow Jones +0.3%
  • Nasdaq +0.7%
  • S&P 500 +0.4%
  • Russell 2000 +0.6%
Photo from Time Out

The bank stocks outperformed the market … After opening in the red, intraday swings were 5% or more.

  • Bank of America (BAC) +2.2%
  • Citigroup (C)  +1.7%
  • Wells Fargo (WFC) +3.3%
  • JP Morgan (JPM) +2.5

Sector Round Up

The day was generally positive, but there were spots of weakness.

8 of 11 sectors ended the day in the green.

At the top…

  • Consumer Discretionary (XLY) +0.9%
  • Financials (XLF) +0.8%
  • Materials (XLB) +0.6%

The losers…

  • Real Estate (XLRE) -0.6%
  • Utilities (XLU) -0.4%
  • Industrials (XLI) -0.1%

Notable Names

Meme stock king Ryan Cohen has built a position in Alibaba (BABA), according to the Wall Street Journal.

Image by Financial Times
  • The position is worth “hundreds of millions” 
  • Small compared to the company’s $300+ billion market cap.
  • Privately he’s been lobbying the company to expand its share buybacks
  • Cohen’s “activist” investments help fuel major moves in GameStop (GME) and Bed Bath and Beyond (BBBY)
  • Shares of BABA are down a fraction this morning in premarket trading

At writing, 1 Bitcoin^ will cost you $21,100.

  • The price peaked near $21,400 on Monday 
  • Over the long weekend, the global crypto market cap reclaimed the $1 trillion threshold for the first time since early November 2022

We remain bullish in the long term on the digital asset. Read our full price analysis here.


The short-term trend for the S&P 500 is clearly higher…

SPY Daily Candles – Chart via thinkorswim

However, the long-term trend is unquestionably down. 

This week expect some pushback from the bears as falling resistance will likely challenge the bull run.

But right now, there is no consensus among our signals…


The market has a short week with a lot to get through. Here are the highlights.

Earnings season continues this morning with more banks reporting…

  • Morgan Stanley (MS) today premarket
  • Goldman Sachs (GS) today premarket
  • Charles Schwab (SCHW) premarket on Wednesday

A couple of others to watch…

  • Alcoa (AA) reports after the close on Wednesday
  • Netflix (NFLX^) after hours on Thursday

This week’s market moving events…

  • PPI inflation data on Wednesday
  • Philadelphia Fed Survey on Thursday
  • Options expiration on Friday


*Low Float
^Open Position

*NEON on watch
*NINE support at $14
*BWEN on watch
AEHR support at $27.50, resistance at $30
EH support at $12
VYGR on watch
THRX support at $9
VRDN resistance at $36
LX support at $3
FULC on watch
ARHS support at $12
ZYME support at $9
^CROX on watch
^PRQR support at $3.25, resistance at $3.75
CDTX on watch
AQMS support at $1.25
RVMD support at $26
HUYA support at $5

Secondary watchlist, float 100+ million

IRDM support at $60
TGTX support at $12, resistance at $14
EXAS on watch
DADA resistance at $14
GOTU resistance at $4
MNSO support at $13
GERN resistance at $3
ROIV resistance at $10

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