1/4/23 The Energy Is Gone, Investors Still Buying


On Tuesday, the stock market had its first trading day of the new year.

Despite morning futures popping as much as 1.5%, the market failed to make any substantial rally intraday.

Photo by Luo Lei on Unsplash

All 4 indexes closed modestly lower…

  • Dow Jones -0.0%
  • Nasdaq -0.8%
  • S&P 500 -0.4%
  • Russell 2000 -0.6%

Beneath the surface, things weren’t so bad. 52% of stocks advanced, while 45% declined.

Sector Round Up

The sectors showed a clear division too. 4 were positive, 1 neutral, and 6 ended in the red.

At the top…

  • Communications (XLC) +1.3%


  • Utilities (XLU) 0.0%

At the bottom…

  • Energy (XLE) -3.5%

The remaining sectors ended within 1% of their previous close.

Notable Names

Mashup created with images from Unsplash & Pexels

Tesla (TSLA^) plummeted 12% after missing delivery estimates.

  • August 2020 was the last time the stock traded at these levels
  • Multiple analysts slash their future expectations
  • Since TSLA’s November 2021 peak, it’s lost $950 billion in market cap
  • Elon Musk’s personal wealth has declined by more than $200 billion, a world record

Energy Sector drops with Oil & Gas. On Tuesday…

  • Oil dropped 4%
  • Natural Gas fell 10%
  • The surge of Covid infections in China is likely causing the repricing … at least in the short-term
  • A winter heat wave in Europe is hurting demand too


The Nasdaq’s triple bottom offered a second chance buying opportunity on Tuesday…

QQQ Daily Candles – Chart via thinkorswim

The risk to reward is phenomenal on this chart, and we remain long TQQQ in hopes of a rally.

If the market moves lower will exit for small losses

Our signals are more bearish than we’d prefer. So the trade above is not for the faint of heart…


The FOMC minutes drop at 2 PM today. Watch for added volatility as the market digests the document.

Today is the final day of the “Santa Rally.” As of yesterday’s close, the S&P 500 is clinging to a gain of just 0.1%.

  • The average return for the Santa rally is +1.3%
  • A positive close today will mark a win for the bulls

Day 1 of 5 for the “Early Warning” is in the books. The S&P 500 is currently down 0.4% for this measure.


*Low Float
^Open Position

*KALA support at $20
*TMBR support at $2
*EVER support at $13.50, resistance at $16
*NINE support at $12
PDSB support at $10
CABA resistance at $10
FREQ support at $3
SMMT support at $4, resistance at $5.50
TERN support at $8
ORMP resistance at $12
ORIC resistance at $6
ETNB support at $10
VATE support at $2
GLYC support at $2.50
^CROX support at $104
^PRQR support at $3
VKTX support at $8
WVE support at $6, resistance at $7
AQMS resistance at $1.20
ALLK support at $8
CPRX support at $18
TGTX support at $10
ARDX support at $2.50
WDH support at $3
IQ on watch

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