1/20/23 It’s Expiration Day: Default Looms & Wednesday Delivers


Stocks fell for a second day on Wall Street.

The U.S. government has officially reached its debt ceiling near $31.4 trillion. The Treasury Department is now deploying “extraordinary measures” to stave off a default.

Image from NBC News

According to the Wall Street Journal, lawmakers have about five months until bondholders wouldn’t be paid.

Stocks reached their low around lunchtime and settled solidly in the red.

  • Dow Jones -0.8%
  • Nasdaq -1.0%
  • S&P 500 -0.8%
  • Russell 2000 -1.0%

Sector Round Up

The selling wasn’t all consuming…

3 of the 11 sectors ended the day in the green.

The winners…

  • Energy (XLE) +1.2%
  • Communications (XLC) +0.5%
  • Healthcare (XLV) +0.2%

At the bottom…

  • Industrials (XLI) -2.1%
  • Consumer Discretionary (XLY) -1.7%
  • Technology (XLK) -1.2%

Notable Names

Shares of Netflix, Inc. (NFLX^) rose 6% after reporting earnings Thursday afternoon.

  • Subscriber growth beat expectations
  • The co-founder and CEO, Reed Hastings, is stepping aside to become Executive Chairman
  • The company can thank the movie “Glass Onion” & series “Wednesday” for the growth
Image from Netflix

Bitcoin^ is holding steady to its current price of about $21,000 at writing.

  • Crypto exchange Genesis filed for bankruptcy overnight, becoming the latest casualty
  • Crypto media outlet Coindesk is reportedly considering “numerous” offers to sell

The latest moves appear to be part of a consolidation of the industry.

We remain bullish on Bitcoin’s long-term outlook.


Look at the long-term and short-term trends … the results are the same.

The VIX is trending lower. And that means the bulls have the upper hand.

VIX Daily Candles – Chart via thinkorswim

The recent selling has not changed our bullish outlook. We’re keeping close tabs on our signals for a reason to flip bearish.

Right now…


Today is the first options expiration day of 2023.

Watch for higher volatility near the closing bell. If you’re day trading, consider using smaller positions and wider stops.


*Low Float
^Open Position

*NEON support at $10
*NINE support at $14
*BWEN support at $5, resistance at $6
CYAD support at $2
BYSI support at $2.50
SY support at $2
VERA support at $8
^AEHR support at $27.50, resistance at $30
SDRL on watch
ALGS support at $2
LX support at $3
ZYME support at $9
^CROX support at $115
AQMS support at $1.20
MNSO support at $14

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