On Friday, markets opened near flat and climbed throughout the day.
Stocked marked their second day of gains after last week’s slowing inflation reading.
- Dow Jones +0.1%
- Nasdaq +1.9%
- S&P 500 +0.9%
- Russell 2000 +0.8%
Risk-on stocks were the clear winners of the day. This is notable, given it was a Friday, and the elections were still unsettled.
Sector Round Up
The gains were lopsided as only 6 of 11 sectors ended Friday higher…
The top gainers…
- Energy (XLE) +2.9%
- Communications (XLC) +2.6%
- Consumer Discretionary (XLY) +2.4%
At the bottom…
- Healthcare (XLV) -1.2%
- Utilities (XLU) -1.1%
Futures opened lower on Sunday night and fell into the morning after the AP called the Senate for the Democrats.
The Republicans are still favored to take the House, which is what the market has priced in.
Bitcoin^ is trading at $16,800 this morning.
Over the weekend, Crypto.com reportedly had withdrawal issues.
The CEO of Binance urged investors to “stay away” from the rival exchange.
As for the future of Bitcoin, it’s important to keep things in context. Bitcoin made a massive bull run from 2011 to 2013, rising from less than a penny to $1,135.
Shortly after this run peaked, Mt Gox, an exchange handling 80% of all bitcoin transactions, shut down. Many people lost everything. By 2015 the price of bitcoin declined 84% from all-time highs.
In hindsight, buying at $172 in 2015 was a wise decision, as the price has increased as much as 40,000% since then.
At writing, bitcoin is trading 75% below all-time highs. See our complete analysis and projection here.
Markets now face an uphill battle from a technical standpoint.
The rising support we marked last week delivered spectacular results.
But as you can see on the chart, there is resistance overhead, and RSI levels are nearing overbought.
- The VIX is at its lowest level since August
- RSI levels, the Dow is overbought, others remain neutral
- The Put-to-Call Ratio is neutral
We’ve earnings and Real Estate data due out this week. Let’s start with earnings.
Major Retail Earnings
- Walmart (WMT) premarket
- Home Depot (HD) premarket
- Advance Auto (AAP) after-hours
- Target (TGT) premarket
- Lowe’s (LOW) premarket
- TJ Maxx (TJX) premarket
- Nvidia (NVDA) after-hours
We’ll finish the week with the Chinese powerhouses…
- Alibaba (BABA) Thursday premarket
- JD.com (JD) Friday premarket
Real Estate Data
A slew of data from the Real Estate Sector is due out this week…
- Wednesday, housing market index (HMI)
- Thursday, new housing starts
- Friday, existing home sales
We’ll be watching these releases because a strong real estate market and a strong economy go hand in hand.
*KLXE support at $16
*NINE on watch
ARQQ support at $9
AVDL resistance at $8
SGHT resistance at $12
^IMVT support at $12
ETNB support at $10
WNC support at $22
ELF on watch
GLYC support at $1
PCVX resistance at $45
MGNX support at $6.50
^CROX support at $80/85
AGLE support at $1.40
RYAM support at $7
VIST resistance at $14, support at $12.50
AVXL support at $13
EYE support at $37
OII support at $14
IGT support at $22
SFM support at $32
MGNI support at $11, resistance at $12
ADMA support at $2.85
VVNT support at $8
GILD support at $80