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10/17/23 Elite Club with 500 Members

News:

Monday was a green day on Wall Street. Investors cheered the new week and the beginning of earnings season.

From Getty Images

The indexes were all green all day…

  • Dow Jones +0.9%
  • Nasdaq +1.2% 
  • S&P 500 +1.1%
  • Russell 2000 +1.6%

Sector Round Up

Each of the 11 sectors posted gains, too.

At the top…

  • Consumer Discretionary (XLY) +1.6%
  • Communications (XLC) +1.6%
  • Industrials (XLI) +1.1%

At the bottom…

  • Technology (XLK) +1.0%
  • Healthcare (XLV) +0.8
  • Energy (XLE) +0.7%

Notable Names

Athletic retailer Lululemon (LULU) popped just over 10% during Monday’s session.

From Getty Images
  • It is one of two companies set to be added to the S&P 500
  • The other is Hubbell (HUBB), which added about +3% on Monday
  • LULU’s surge made new 52-week highs and added $4.7 billion in market cap

Bitcoin^ spiked nearly 10% after a false report that the SEC had approved a spot ETF for the digital token.

  • At its peak, it touched $29,500
  • At writing, it’s trading near $28,500

Technicals: 

How much fear is in the market? According to the chart, not much…

VIX Daily Candles – Chart by thinkorswim

20 is an important level for the VIX. It just can’t seem to get past it.

At this point, even the volatility in the Middle East hasn’t been able to inject any concerning amount of fera into the markets. 

Our outlook remains bullish.

Your latest readout…

Timing:

This week is options expiration week.

The put-to-call ratio remains out of whack. It could drive a squeeze higher into the week’s end.

We’ll be watching closely.

Watchlist:

*Low Float
^Open Position

*PRZO resistance at $3
*PEVsupport at $1.40, resistance at $1.60
*ALXO support at $9, resistance at $10
^*GLBS support at $2
LFMD support at $6.50, resistance at $7
CRNX resistance at $30
PGTI support at $30
APLT support at $2.75
LULU support at $400

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