11/16/23 Too Much Too Fast


Markets posted another day of gains on Wednesday as PPI revealed falling prices for producers.

  • Month-over-month prices declined -0.3%
  • Year-over-year price rose +1.3%, well below the Fed’s goals of 2%

Initially, the markets popped. But buyers gave way to selling pressure.

Charts by Finviz

The Nasdaq and S&P 500 trended lower through Wednesday’s session but still closed with gains.

Gains were modest for all major indexes

  • Dow Jones +0.5%
  • Nasdaq +0.1%
  • S&P 500 +0.2%
  • Russell 2000 +0.2%

Sector Round Up

9 of the 11 sectors posted gains on Wednesday.

At the top…

  • Consumer Staples (XLP) +0.8%
  • Financials (XLF) +0.6%
  • Communications (XLC) +0.5%

The losers…

  • Energy (XLE) -0.2%
  • Utilities (XLU) +0.3%

Target Tops

Shares of Target (TGT) gained a whopping 18% after an earnings beat. The stock price and profits rose despite a decline in sales.

Image from Click Americana
  • The surge added $9 billion in market cap
  • Despite the gains, TGT stock is still well below historical highs
  • It’s down -12% year-to-date
  • And -28% from 52-week highs


It’s official—The market is overbought.

SPY Daily Candles w/10-Day RSI – Chart from thinkorswim

RSI levels ended a second day in overbought territory.

History tells us a drawdown is near. But the extent is unclear. 

You can tell from today’s chart the faster the overbought conditions are alleviated, the better odds the bulls have.

Your latest readout…


Two trading sessions remain before the November options expiration.

Next week, the market will head into an abridged trading week for the Thanksgiving holiday.


*Low Float
^Open Position

*DRCT on watch
*SHOT support at $2
*MYO is on watch
*ACIC support at $9
TOI support at $2.20, resistance at $2.50
^WRAP support at 2.75, resistance at $3
RYTM support at $32, resistance at $34
ALKT support at $22

Seconard watchlist—float about 100 million

nmbNMRK support at $7.50
AFRM support at $24, resistance at $26
support at $17, resistance at $18

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