News:
Markets continued to move sideways on Tuesday.
The indexes closed mixed but tilted green…
- Dow Jones +0.2%
- Nasdaq +0.3%
- S&P 500 +0.1%
- Russell 2000 -0.5%
Life of a Legend
In other news, legendary investor Charlie Munger died on Tuesday at the age of 99.
Munger, born in Omaha, worked in Warren Buffett’s grandfather’s grocery store as a teenager.
He and Buffett became best friends and built Bershire-Hathaway (BRK-A, BRK-B) into a near-trillion-dollar empire.
Buffett liked “buying fair businesses at wonderful prices” but switched to buying “wonderful businesses at fair prices” based on Munger’s guidance.
Sector Round Up
The sectors failed to produce gains (or losses) of more than 1% for the fifth day in a row.
8 of the 11 sectors closed higher.
At the top…
- Consumer Discretionary (XLY) +0.6%
- Real Estate (XLRE) +0.6%
- Consumer Staples (XLP) +0.5
The losers…
- Financials (XLF) -0.0%
- Industrials (XLI) -0.3%
- Healthcare (XLV) -0.5%
Technicals:
The market remains overbought and near resistance…
It’s looking more and more like it’s time for a turn.
The expected drawdown will likely be mild if everything else stays the same.
Your latest readout…
- The VIX remains near 52-week lows
- RSI levels for the big three indexes remain overbought
- The put-to-call ratio is neutral
Timing:
This morning at 8:30 AM, the Bureau of Economic Analysis will release a revised estimate of Q3 GDP.
Last month’s advance estimate showed the economy expanded well above expectations.
Watchlist:
*Low Float
^Open Position
*DRCT support at $9
*GYRE support at $17
*SHOT support at $3, resistance at $5
*EJH support at $4.50
*MYO support at $3.20, resistance at $3.50
HRTG support at $8
Secondary watchlist—float about 100 million
NMRK support at $7.50, resistance at $8
AUTL support at $4.50
BKD support at $4.50
GPS on watch
AFRM on watch
SID support at $3.20