News:
Markets posted another day of significant gains on Monday.
The major indexes closed at their highs. Again.
And once again, “risk-on” Nasdaq led the way…
- Dow Jones +0.8%
- Nasdaq +2.0%
- S&P 500 +1.2%
- Russell 2000 +1.3%
It appears that sellers have lost momentum.
Sector Round Up
The 11 sectors were all green.
At the top, the “risk-on” sectors…
- Technology (XLK) +2.3%
- Communications (XLC) +1.8%
- Consumer Discretionary (XLY) +1.6%
At the bottom…
- Real Estate (XLRE) +0.3%
- Energy (XLE) +0.1%
- Utilities (XLU) +0.0%
Technicals:
The Nasdaq broke out of its bearish downtrend…
We called the blue circle a “buying opportunity.” We remain long TQQQ as our bullish stance is firmly intact.
Today we’re watching for breakout continuation.
The key signals suggest there is no reason the buying can’t continue…
- The VIX continues to trend lower
- RSI levels are all neutral
- The Put-to-Call Ratio is neutral
Timing:
The first FOMC meeting of 2023 commences exactly two weeks from today.
While we keep a close eye on earnings this week and next … all eyes will be on the Fed come the first of February.
Watchlist:
*Low Float
^Open Position
*APXC support at $3
*BWEN support at $5, resistance at $6
BYSI support at $2.50
ATRO on watch
SY on watch
VERA support at $8
^AEHR support at $30
SDRL resistance at $41
DPRO on watch
FLNC support at $22.50
LX support at $3.25, resistance at $3.50
ZYME support at $9, resistance at $10
^CROX support at $120
AQMS support at $1.20, resistance at $1.60
TOUR resistance at $2.50
SPRU on watch
ARDX support at $3
SUMO support at $9