News:
Monday marked another day of solid gains for the markets.
- Dow Jones +1.3%
- Nasdaq +0.9%
- S&P 500 +1.2%
- Russell 2000 +0.4%
But it wasn’t hard to find losers. 52% of all stocks advanced, while 43% declined.
There was a lot of weakness in Chinese-related stocks.
President Xi’s consolidation of power and double down on the zero-Covid policy sent investors running for more open markets.
- The NASDAQ “Golden Dragon” China Index (HXC) fell 14%
- The index shed $73 billion in market cap
- And closed at its lowest level since 2013.
Sector Round Up
9 of 11 sectors ended the day higher.
Some of the “safer” bets led the way…
- Healthcare (XLV) +1.9%
- Consumer Staples (XLP) +1.8%
The losers…
- Real Estate (XLRE) -0.1%
- Materials (XLB) -0.6%
Technicals:
The VIX, aka the “fear index,” is finally starting to come back down.
You can see a clear break in the uptrend that gripped the gauge since mid-August.
The previous decline, from June to August, was slow and steady.
We can’t say for certain what it will do this time, but history is typically a pretty good guide.
As for right now, there is nothing to challenge this view.
- RSI levels are neutral
- The Put-to-Call Ratio is neutral
Timing:
Besides all the earnings, there are two notable events on our calendar this week…
- Q3 GDP data drops on Thursday premarket.
- Univ of Mich consumer sentiment survey will be released on Friday.
This morning futures are lower.
Big tech will start releasing earnings after the close today. See all our top earnings to watch this week listed here.
Watchlist:
*Low Float
^Open Position
*SOBR resistance at $4
*KLXE support at $12
*^RELL on watch
*^NINE support at $4
*RVPH support at $3
IMRA support at $4
AEHR support at $19
ETNB support at $8
^IMVT support $10
PARR support at $20 or $21
VIST support at $12
ADEA support at $10
HLIT support at $14
NFLX^ support at $250 or $280