10/26/22 Bitcoin Boom, Google & Microsoft Plummet


Markets were green for a third consecutive day on Tuesday.

Photo by Burak The Weekender from Pexels

82% of stocks advanced, and just 15% declined. And the indexes soared…

  • Dow Jones +1.1%
  • Nasdaq +2.3%
  • S&P 500 +1.6%
  • Russell 2000 +2.7%

Note the “risk on” indexes outperformed.

Sector Round Up

All 11 sectors ended the day higher. At the top…

  • Real Estate (XLRE) +4.0%
  • Communications (XLC) +2.7%
  • Consumer Discretionary (XLY) +2.5%
  • Materials (XLB) +2.5%

The only sectors to gain less than 1%…

  • Healthcare (XLV) +0.8%
  • Energy (XLE) +0.1%

Notable Names

Smash up photos sourced from Techcrunch & CNET

Shares of Alphabet (GOOG, GOOGL) are off more than 6% in premarket trading.

  • The selloff began with the company’s earnings call
  • Profits & sales missed expectations
  • Q3 marked the 5th consecutive quarter that sales growth slowed for the search giant

Alphabet is the largest component of the communications sector. The sector as a whole has shown considerable weakness. While we remain bullish on the broader market, we are avoiding this sector for now.

Microsoft (MSFT) is down nearly 6% this morning too.

  • An earnings beat wasn’t enough to stop a selloff…
  • The company warned of a decline in PC sales likely to hurt future growth.
  • In Q3, the company saw the worst net income in over 2 years
  • And the weakest revenue growth in more than 5 years

Bitcoin^ broke out to the high side yesterday.

  • At writing, it’s trading near $20,700
  • This is its highest level since September 13th
  • We remain buyers.


The SPY is smashing resistance levels.

Yesterday it rose above the second critical resistance level this week.

SPY Daily Candles – Chart via thinkorswim

We’ll see if the $380 level can hold after the disappointing performance of the tech giants mentioned above.

Our signals indicate that the markets are in good shape to continue their rally…


Looking ahead, there are two events circled on our calendars…

  1. The next FOMC meeting on November 1 & 2 is only a week away.
  2. The midterm elections could be settled by the time we wake up on November 9th, exactly two weeks from today.

This morning, earnings continue. Our top earnings to watch are listed here.


*Low Float
^Open Position

*SOBR resistance at $4
*KLXE support at $12
*^RELL on watch
*^NINE support at $4
*RVPH support at $3
SLS resistance at $3.75
IMRA support at $4
MEDP on watch
AEHR support at $19
ASC support at $12
ETNB support at $8
^IMVT support $10
GMTX support at $12
CALX support at $65
PARR support at $20 or $21
VIST support at $12
EMAN support at $1
ADEA support at $10, resistance at $11
HLIT support at $15
NFLX^ support at $250 or $280

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