News:
Friday’s short session delivered low volume and mixed results. 58% of stocks advanced, while 37% declined.
The indexes ended the day mixed…
- Dow Jones +0.4%
- Nasdaq -0.5%
- S&P 500 -0.0%
- Russell 2000 +0.3%
This morning futures are notably lower as widespread protests against China’s “zero-covid” policy grip the world’s most populous nation.
Sector Round Up
7 of 11 sectors ended Friday higher. No sector rose or fell more than 0.6%.
At the top…
- Real Estate (XLRE) +0.6%
- Healthcare (XLV) +0.6%
- Utilities (XLU) +0.6%
At the bottom…
- Technology (XLK) -0.6%
- Communications (XLC) -0.6%
Technicals:
The Put-to-Call Ratio ended Friday at its highest level in a year…
The extreme oversold conditions that we see right now are unsustainable. Ultimately the market needs balance … extreme moves warrant quick rebalances.
This morning futures are pointing to a lower open. Indexes are off by about 1%.
Watch for quick covering at the open … we expect an early rally.
We’ll be monitoring the Put-to-Call Ratio for balance. If it remains extremely oversold, above 1.3, it may be time for a bullish bet.
- The VIX remained low on Friday but is moving higher this morning
- RSI levels, the Dow remains overbought while the rest are neutral
Follow us on Twitter. We’ll announce any trades we make in real time there.
Timing:
This week, November ends, and the final month of 2022 begins. Just two notable news events lie ahead…
- Wednesday, the final Q3 GDP number will be released
- Friday, the latest unemployment figures
Look for your full December outlook in Wednesday’s newsletter.
The End of a Legend
On this day in 1940, Jesse Livermore died by suicide at 63 years old.
- Livermore pioneered day trading.
- He became the richest man in the world for a time.
- Died alone with mounds of debt
A fictional account of his life is retold in Reminiscences of a Stock Operator by Edwin Lefevre. This book is a must-read for any serious stock trader.
Watchlist:
*Low Float
^Open Position
*NINEsupport at $8
*UCL on watch
PDSB resistance at $9, support at $8
SCPH support at $7
IMMR support at $7
PBYI support at $4
^IMVT support at $13.50
WNC support at $24, resistance at $26
^MANU on watch
^CROX support at $85
^RYAM support at $7, resistance at $8
PRVB support at $9
MICT on watch
ADMA support at $3
TME resistance at $6
GILD support at $84