News:
Markets staged a broad selloff during Wednesday’s session.
After a near-flat open, buyers were largely absent from the market, and stocks faded through the entire session.
The indexes closed notably red.
- Dow Jones -1.0%
- Nasdaq -1.6%
- S&P 500 -1.3%
- Russell 2000 -2.1%
If you’re looking for a reason, you can take your pick…
- Middle East turmoil
- Rising bond and mortgage rates
- Congressional disfunction
Sector Round Up
Of the 11 sectors, 9 closed lower on Wednesday.
The winners…
- Energy (XLE) +0.9%
- Consumer Staples (XLP) +0.4%
At the bottom…
- Consumer Discretionary (XLY) -2.4%
- Industrials (XLI) -2.4%
- Materials (XLB) -2.6%
Notable Names
Earnings season brought big moves to two big names—in opposite directions.
Investors sent shares of Netflix (NFLX^) nearly 14% higher in after-hours trading.
Its latest earnings report gets the credit…
- Password-sharing crackdowns boosted subscriptions by more than 10%
- Higher prices are coming to the US, France, and the UK
- If the gains hold, it will add about $21 billion in market cap
Shares of Tesla (TSLA^) went in the opposite direction…
TSLA’s share price fell about 5% during Wednesday’s session and another 5% after reporting earnings.
- Tamped down Cybertruck expectations are contributing to the selling
- Operating margins are down year-over-year, too
- At writing, the company has shed $76 billion in market cap over the past 24 hours
Technicals:
Whenever the market has a selloff, it’s worth checking the fear gauge.
On Wednesday, the VIX moved higher but failed to hold above the key level of 20.
In fact, the spikes are spiking lower. You can clearly see falling resistance over the past several sessions.
Your latest readout…
- RSI levels are all neutral
- The put-to-call ratio remains oversold
Timing:
Today is the 36-year anniversary of Black Monday.
- Uncertainty, computers, and margin calls combined to put global markets into chaos
- The Dow Jones dropped 22%, its largest single-day loss ever
October is a time for volatility. It’s also a time for market bottoms.
Our analysis has not changed. We believe the bottom is in, and each selloff is a buying opportunity for risk-on investors.
Watchlist:
*Low Float
^Open Position
*PEV support at $1.40, resistance at $1.60
^*GLBSsupport at $2
METC support at $11
EPAC support at $28
PGTI support at $30
LULU support at $400
MREO support at $1.80