News:
Headlines continue to paint a dim picture of the world. And, on the surface, markets appear to be taking the bait.
Monday belonged to the bears if you ask the Dow Jones or the Energy Sector.
The indexes opened red and turned green just before lunchtime. The rally was met with selling, and most indexes posted a third day of losses.
There was a notable winner…
- Dow Jones -0.6%
- Nasdaq +0.3% ←
- S&P 500 -0.2%
- Russell 2000 -0.9%
Sector Round Up
Here’s where things get a bit more interesting.
Of the 11 sectors, 8 ended Monday lower.
The winners were the risk-on sectors…
- Consumer Discretionary (XLY) +0.5%
- Technology (XLK) +0.1%
- Communications (XLC) +0.1%
At the bottom…
- Real Estate (XLRE) -0.9%
- Materials (XLB) -1.1%
- Energy (XLE) -1.6%
Another risk-on asset of note … ^Bitcoin!
Technicals:
Bitcoin smashed through resistance at $30,000 and $32,000 over the past 3 days.
It made new 52-week highs after the stock market closed last night…
At writing, 1 Bitcoin costs about $34,200. It peaked above $35,000 briefly.
The deeper we look, the more appetite for risk we find.
Markets are showing resilience in the face of massive geopolitical uncertainty.
Your latest readout…
- The VIX is hoover just above 20 after rejecting higher levels
- RSI levels continue to cling to neutral
- The put-to-call ratio is neutral … suggesting shorts are covering
Timing:
Aside from the slue of earnings due out this week, there are two major news releases scheduled.
- Q3 Advance GDP estimate drops on Thursday
- PCE inflation data is due out Friday
Watchlist:
*Low Float
^Open Position
*EPIXsupport at $4
METC support at $11
EPAC support at $28
PGTI support at $30
MREO support at $1.80, resistance at $2