10/19/22 Netflix, Surgery, & What Happened 35 Years Ago


At the close on Tuesday, markets booked back-to-back gains.

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

The indexes gapped up as much as 2% at the open and slowly gave back some of those gains during the day.

As you’ll see in the technicals below, the candle was red, but the day was green.

Sector Round-Up

All 11 sectors posted gains for a second day.

This time the “safe” sectors outperformed…

  • Industrials (XLI) +2.4%
  • Materials (XLB) +2.0%
  • Utilities (XLU) +1.8%

At the bottom…

  • Communications (XLC) +0.8%
  • Healthcare (XLV) +0.6%

Notable Names

Earnings season is rewarding winners big time so far…

Images from Netflix & Intuitive Surgical

Straight from this week’s earning list, Nexflix (NFLX) gained as much as 15% after hours.

  • The streaming services added subscribers for the first time in three quarters.
  • The new subscribers count smashed expectations … +2.4 million actual v +1.0 million estimated.
  • At writing, the market cap gains top $12 billion.

Intuitive Surgical, Inc. (ISRG) added 10% after hours on an earnings beat.

  • The robotic surgery giant saw the biggest gains in surgical procedures.
  • This suggests people are going under the knife again at pre-pandemic levels.
  • The gains represent more than $7 billion in market cap.


The SPY lept past a critical resistance level yesterday.

And while it fell back to support, the level is holding for now. At writing, premarket futures are near flat.

SPY Daily Candles – Chart via thinkorswim

The $370 area was a critical support level in June and July. Time will tell if it remains through October and November.

Our other signals…


Today is the 35th anniversary of “Black Monday.”

A combination of new computer models, the end of a recession, and new regulations from congress sent markets into freefall.

The Dow Jones lost about 23% of its value that day. It was the worst single-day decline for the Dow ever.

We study the past to learn more about the future—failure to understand the past risks repeating it.


*Low Float
^Open Position

*ENRA is on watch
*PEGY support at $5
*^RELL support at $20
*RVPH support at $3
*WNW support at $1.40
IMRA support at $4
HROW resistance at $13, support at $11
AEHR resistance at $19
ETNB support at $8
IMVT support at $9, resistance at $10
VIST support at $11, resistance at $12
WVE support at $4.50, resistance at $5.20
ADEA support at $10
HLIT support at $14

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