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%
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.
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.
*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