News:
During Thursday’s session, markets moved generally sideways for a second day.
Fuel prices are falling, and some lousy earnings had a cooling effect.
The major indexes closed mixed…
- Dow Jones -0.1%
- Nasdaq +0.1%
- S&P 500 +0.1%
- Russell 2000 -1.5%
Several large caps stocks took a beating after disappointing earnings reports. That includes…
- Walmart (WMT) -8%
- Cisco (CSCO) -10%
- Palo Alto (PANW) -5%
Sector Round Up
7 of the 11 sectors posted gains on Thursday. The magnitude of the loser outpaced that of the winners.
However, two of the three risk-on sectors closed near the top…
- Utilities (XLU) +0.5%
- Technology (XLK) +0.5%
- Communications (XLC) +0.4%
At the bottom…
- Consumer discretionary (XLY) -1.0%
- Consumer Staples (XLP) -1.2%
- Energy (XLE) -2.0%
Technicals:
There’s still no fear in the market…
The VIX is staying near 52-week lows and well below 16, which is extremely bullish.
Although a short-term pullback is warranted, based on RSI levels.
Your latest readout…
- RSI levels for the big three indexes remain overbought
- The put-to-call ratio is neutral
Timing:
Today is November options expiration. That could add volatility, especially near the close.
Bulls are getting louder …. The Wall Street Journal suggested the “Stage [is] Set for a Year-End Rally.”
Here’s how they made the case…
- Generally strong corporate earnings
- Improving inflation data
- Solid consumer spending
- “Soft Landing” in sight
- A year-end rally is the “usual”
We couldn’t agree more.
Watchlist:
*Low Float
^Open Position
*DRCT resistance at $5.50
*ATGL on watch
*SHOT on watch
*MYO is on watch
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
NMRK support at $7.50
KD support at $18