News:
Monday’s trading session is in the books, and it logged some impressive numbers.
- Dow Jones +1.9%
- Nasdaq +3.4%
- S&P 500 +2.6%
- Russell 2000 +3.2%
Once again, the U.K. had a role to play…
This time the government scraped cut taxes for individuals.
The markets approved of the plan, which could help to curb inflation.
Sector Round-Up
All 11 sectors gained on Monday.
The best performers…
- Consumer Discretionary (XLY) +4.1%
- Real Estate (XLRE) +3.7%
- Technology (XLK) +3.1
At the bottom…
- Energy (XLE) +1.3%
- Consumer Staples (XLP) +1.1%
Notable Names
A few of Monday’s big movers caught our eye…
Metaverse stock Roblox (RBLX^) gained 20%.
- Buyers added about $5 billion in market cap.
- The catalyst … impressive growth numbers.
Bank of America (BAC) gained more than 6%.
- The surge in stock price added over $15 billion in market cap.
- The company reported better-than-expected earnings.
Shares of Cano Health (CANO) fell 42%.
- The decline shed about $2 billion in market cap.
- CVS Health (CVS) is reportedly walking away from a deal to acquire the company.
Technicals:
The VIX is at support.
The VIX has been trending higher for two months. A break from this trend will bolster the bull’s seasonal strength.
Our other signals offer no alternative narrative…
- RSI levels are neutral
- The Put-to-Call Ratio is neutral
Timing:
Three weeks until midterms.
The market has priced in a divided government.
Once the elections are settled, there will be little to hold the bulls back.
Remember, the “sweet spot” runs through Q2 of 2023.
Watchlist:
*Low Float
^Open Position
*PEGY support at $5
*^RELL support at $18
*RVPH support at $3
*WNW on watch
HROW resistance at $13, support at $11
ETNB support at $8
IMVT support at $9, resistance at $9
VIST support at $11, resistance at $12
WVE support at $4.50
ADEA support at $10
HLIT support at $13, resistance at $14