11/29/22 Falling Like Dominos… BlockFi & China’s Policy


On Monday, markets gapped lower and declined steadily through the day.

Image by Finviz

All 4 indexes ended the day in the red.

  • Dow Jones -1.4%
  • Nasdaq -1.6%
  • S&P 500 -1.5%
  • Russell 2000 -2.0%

Headlines continue to blame the unrest in China, which could hamper global growth.

The New York Times said China’s zero-Covid policy “no doubt … saved lives” but is now “outdated.”

  • President Xi sent police out in force to quiet the protests. 
  • Videos on social media showed intense clashes.
  • Covid cases reach record-high levels over the weekend

Our take … The protests have likely spread Covid infections far outside of the government’s control. China will soon adapt to the virus, like the rest of the world has, because they’ll have no other choice. Ultimately the development is likely bullish.

Sector Round Up

All 11 sectors declined amid the selloff. The biggest hits…

  • Real Estate (XLRE) -2.8%
  • Energy (XLE) -2.7%
  • Materials (XLB) -2.2%

The smallest losers…

  • Consumer Staples (XLP) -0.4%
  • Consumer Discretionary (XLY) -0.6%
  • Healthcare (XLV) -0.8%

Crypto Collapse Continues

BlockFi, a crypto lender and self-described “digital asset ecosystem,” filed for “voluntary” chapter 11 bankruptcy, according to a press release.

Image from @ParikPatelCFA (Parody) on Twitter
  • It’s the latest casualty linked to the Fraud that brought down FTX
  • Bitcoin’s price held steady throughout the news cycle … at writing, it’s trading near $16,500


The selling did little to change our technical outlook. No major support level was approached or broken.

The SPY may find support at yesterday’s close…

SPY Daily Candle – Chart via thinkorswim

We’ll continue to monitor our signals for real signs of fear. But so far, we do not see any.


Just two trading days left in November.

December usually starts on a weak note and finishes strong. Your complete December outlook will be delivered tomorrow morning.


*Low Float
^Open Position

*NINE support at $8
*UCL on watch
PDSB resistance at $9, support at $8
SCPH support at $7
AXSM support at $70
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
CPRX support at $16
ADMA support at $3
TME support at $6
GILD support at $84

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