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1/26/23 Bear Attack Fails, Tesla Soars

News:

Wednesday morning belonged to the bears. Markets opened lower and fell.

One hour into the trading session, the Nasdaq was down about 2.5%.

But that’s as far as the bears got…

Image from Wikimedia

Stocks clawed back the losses and closed the day mixed and near flat…

  • Dow Jones +0.0%
  • Nasdaq -0.2%
  • S&P 500 -0.0%
  • Russell 2000 +0.2%

Sector Round Up

The bulls ended the day with a slight advantage. 

53% of stocks closed the day higher, while 42% declined.

8 of the 11 sectors closed the day green.

At the top…

  • Financials (XLF) +0.8%
  • Consumer Discretionary (XLY) +0.5%

At the bottom…

  • Utilities (XLU) -1.4%
  • Industrials (XLI) -0.6%

The remaining sectors finished within 0.5% of their previous close.

Tesla’s Tomorrow

After the close yesterday, Tesla (TSLA^) reported earnings and revealed record profits of $12.6 for 2022. More than double 2021 profits.

Model 3 – Image From Tesla
  • At writing, the stock price is up 7% in premarket trading
  • Since bottoming in early January, the stock has gained 43% 
  • And added $150 billion in market cap during th rise

Last year’s price cuts for Telsa cars have led to a demand boom.

During the earnings call, CEO Elon Musk said in 2023, “we’ve seen the strongest orders year-to-date than ever in our history.”

Technicals: 

The S&P 500 continues to struggle at resistance.

Good thing we warned you about this weeks ahead of time … :)

SPY Daily Candles – Chart via thinkorswim

The short-term trend is pointing higher. The long-term trend is poised to be broken.

At writing, we believe a breakout is inevitable. We remain long SPXL.

Our other signals offer no alternative…

Timing:

This morning at 8:30, the Bureau of Economic Analysis will release the preliminary estimate for Q4 GDP. We’ll be watching the market to gauge the reaction.

The January Barometer remains positive…

  • At writing, the S&P 500 is up 4.5% since January 1.

Watchlist:

*Low Float
^Open Position

*APXCsupport at $4
*BWEN support at $5, resistance at $6
BYSI support at $2.50, resistance at $3
SY on watch
VERA support at $8
^AEHR support at $30
SDRL resistance at $41
DPRO support at $1.40
FLNC support at $22.50
LX support at $3.25, resistance at $3.50
PTGX support at $12
ZYME support at $9, resistance at $10
^CROX support at $120
AQMS support at $1.20, resistance at $1.60
CBAY support at $7
TOUR resistance at $2.50
TIGO on watch
SUMO on watch
TGTX support at $14
ARDX support at $3
AMLI support at $3.30

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