Markets struggled to find a direction on Tuesday.
In the end, the major indexes settle mostly flat.
- Dow Jones -1.1%
- Nasdaq +0.1%
- S&P 500 -0.2%
- Russell 2000 -0.1%
The notable outlier was the Dow Jones.
- It was dragged down when Goldman Sachs (GS)
- Sub-par earnings were to blame
- The stock fell 6%
- The company lost $8 billion in market cap
The broader view was mixed. 46% of stocks rose while 50% declined.
Sector Round Up
The sectors reflected the market.
5 of 11 sectors ended the day in the green.
At the top…
- Technology (XLK) +0.5%
- Energy (XLE) +0.2%
At the bottom…
- Materials (XLB) -1.0%
- Communications (XLC) -0.9%
- Industrials (XLI) -0.9%
Metaverse giant Roblox (RBLX^) popped 12% higher on Tuesday.
- The rise was led by increased daily user activity
- Starting in the spring, the company will no longer release monthly user data
- Tuesday’s rally added about $2 billion in market cap
Meme stocks outperformed the market.
- Gamestop (GME^) +6%
- AMC (AMC^) +20%
- AMC (APE^) +12%
- Bed Bath & Beyond (BBBY^) +13%
Looking for a reason? Good luck.
The only notable headline was “meme stock king” Ryan Cohen’s newly revealed position in Alibaba (BABA), which fell about 2% yesterday.
The VIX is accepting lower levels. And a lower VIX favors the bulls.
The trend is obviously lower. No drawing is needed to prove the point.
We see no reason the market can’t continue to rally over the coming months.
- RSI levels are mostly neutral … the Russell 2000 is still overbought
- The Put-to-Call Ratio is neutral
PPI inflation data will be released at 8:30 this morning. We’ll be monitoring the market’s reaction, which has been volatile during the previous two reports.
After the close, aluminum giant Alcoa (AA) reports earnings.
We’ve been monitoring the metals and commodities market for signs of economic strength. We’ll keep out up to date.
*NEON on watch
*NINE support at $14
*GP resistance at $4
*BWEN support at $5
CYAD on watch
VERA resistance at $8
AEHR support at $27.50, resistance at $30
ALGS on watch
THRX on watch
VRDN resistance at $36
LX support at $3
ARHS support at $13
ZYME support at $9, resistance at $10
^CROX on watch
^PRQR support at $3.25, resistance at $3.75
CDTX on watch
AQMS support at $1.25
HUYA support at $5
Secondary watchlist, float 100+ million
IRDM support at $60
YPF on watch
DADA resistance at $14
GOTU resistance at $4
MNSO support at $13.50
GRAB resistance at $4