News:
Markets pared their gains on Wednesday, declining modestly across the board.
- Dow Jones -0.3%
- Nasdaq -0.9%
- S&P 500 -0.7%
- Russell 2000 -1.7%
76% of stocks fell with the broader market. There were few bright spots.
Sector Round-Up
The sectors ended mixed but favored the bears. Only 2 of 11 sectors posted gains.
- Energy (XLE) +3.0%—Its highest close since mid-June.
- Communications (XLC) +0.1%
At the bottom…
- Healthcare (XLV) -1.4%
- Financials (XLF) -1.6%
- Real Estate (XLRE) -2.5%
I Won’t Let You Down…
Tesla (TSLA^) is down about 5.5% at writing after posting near-record deliveries but cutting its end-of-year forecast.
A little more than one hour before earnings dropped, CEO Elon Musk tweeted…
During the earnings call, he seemed unconcerned about the possibility of recession or weakening demand. He said they expect to “sell every car that we make for as far into the future as we can.”
Technicals:
The VIX remains elevated and so far is unwilling to break down from its months-long uptrend.
Although the VIX has been unable to break through resistance. And over the past week, it has finished each day near its lows.
Our analysis says the market is trying to turn.
The other signals…
- RSI levels are neutral
- The Put-to-Call Ratio is oversold
Timing:
Less than two weeks until the next FOMC meeting.
- Right now, we’re expecting another 0.75% rate hike.
Mid-terms are less than three weeks away.
- Markets expect the Democrats to lose control of at least one part of Congress.
We may have to wait for these events to settle before the bulls take over.Our outlook remains bullish. We’ve been buying every dip.
Watchlist:
*Low Float
^Open Position
*KLXE is on watch
*NINE support at $4.50
*^RELL support at $20
*RVPH support at $3
IMRA support at $4
HROWresistance 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
NFLX^ support at $250