10/19/23 Netflix Rips, Tesla Dips


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.

From Envato Elements

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.

From Getty Images

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


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.

VIX Daily Candles – Chart by thinkorswim

In fact, the spikes are spiking lower. You can clearly see falling resistance over the past several sessions.

Your latest readout…


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.


*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

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