News:
Stocks gained on Thursday morning. Major indexes were up more than 1% in early trading.
But the gains turned to losses as the day wore on, and markets ultimately settled lower.
- Dow Jones -0.3%
- Nasdaq -0.6%
- S&P 500 -0.8%
- Russell 2000 -1.2%
Headlines were focused on the resignation of British Prime Minister Liz Truss. Her six-ish weeks in office was the shortest term a UK PM has ever served.
Ironically she was in office when the longest-serving monarch’s reign ended.
The market gave little reaction to the news.
Sector Round-Up
The sectors ended mixed again but favored the bears again. 3 of the 11 sectors eked out gains.
- Communications (XLC) +0.2%
- Energy (XLE) +0.1
- Technology (XLK) +0.1%
At the bottom…
- Consumer Discretionary (XLY) -1.9%
- Industrials (XLI) -2.0%
- Utilities (XLU) -2.5%
Notable Names
A few larger companies made oversized moves that caught our eye.
Lam Research (LRCX) rallied 8% after better-than-expected earnings.
- The semiconductor stock trading volume is at its highest in over two years.
- Since bottoming last week, the company has added about $9 billion in market cap
AT&T (T) rose 8%, helping the communication sector become the leader for the day.
- AT&T beat earnings expectations also
- The CFO noted that overdue bills are “slightly worse than pre-pandemic norms.”
- The stock’s 4-day rally added about $18 billion in market cap to the communication giant.
Technicals:
The market is ready to rally.
Keeping things in perspective is important as the market ends a choppy week.
Looking back 20 years, the current state of overly beat-down stocks has never been maintained.
This chart tells us there is likely no one left to sell. Most of the choppy action is the Wall St algos beating each other up.
As soon as buyers gain confidence, the market is bound to rally.
The other signals…
- The VIX declined, favoring the bulls
- RSI levels are neutral
- The Put-to-Call Ratio is oversold
Timing:
Today is the first options expiration of Q4.
Continued choppiness is likely today.
Watchlist:
*Low Float
^Open Position
*KLXEsupport at $11
*NINE support at $4
*^RELL support at $21
*RVPH support at $3.50
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
PARR support at $20
VIST support at $12
WVE support at $4.50, resistance at $5.20
ADEA support at $10
HLIT support at $14
NFLX^ support at $250