1/21/22 The Wild Ride Continues

News:

The market tried to rally yesterday but ended up getting stuffed. Swinging from 2% gains in the Nasdaq to more than a 1% loss.

Photo by Angie from Pexels

Peloton Interactive, Inc. (PTON), facing low demand, has shut down the production of its bikes and treadmills. Its stock fell more than 20%.

Netflix, Inc. (NFLX) is down more than 20% in after-hours trading after missing on subscriber growth and a disappointing outlook.

Bitcoin has broken down below $40,000 support, for the first time since August.

Technicals:

Bonds are rising as investors flee for safer havens.

The VIX is rising as it should in bearish markets.
Put-to-call remains neutral…
But RSI levels are very oversold right now.

At the end of a long week, markets look ready to bounce. But I don’t expect it to last.

Timing:

January options expiration date (today) has delivered gains in the last 10 of 11 years.

I believe any rally we see will get sold into. I’m not ready to start buying the dip. Right now I’m more likely to sell the rally.

Watchlist:

*Low Float

*IMTE has resistance at $12
*BSFC is on watch
*GMVD has support at $4.50
BPT has support at $6.50

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