News:
Monday started out as another choppy session. In the end, the bulls claimed all four major indexes…
- Dow Jones +1.3%
- Nasdaq +0.9%
- S&P 500 +1.0%
- Russell 2000 +0.6%
Beneath the surface, there were clear winners and losers. 58% of stock advanced, while 38% declined.
Sector Round Up
8 of 11 sectors ended Monday in the green.
The top performers…
- Communications (XLC) +1.8%
- Energy (XLE) +1.7%
- Technology (XLK) +1.7%
The losers…
- Utilities (XLU) -1.9%
- Consumer Discretionary (XLY) -0.7%
- Real Estate (XLRE) -0.0%
Notable Names
While the risk-on sectors outperformed, certain risk-on assets fell.
Shares of Tesla (TSLA^) fell 5% yesterday to their lowest level since May 2021.
- CEO Elon Musk appears distracted by his chaotic acquisition of Twitter
- He claimed in a tweet that Twitter “usage is at an all-time high.”
- We believe the stock is a buy at these levels.
Bitcoin^ fell below $20,000 for the first time in two weeks
- There is no clear catalyst
- Notably, it happened on the eve of the mid-term elections
- We remain buyers
Technicals:
The VIX continues to decline…
The fear gauge closed below the key level of 25 two days in a row. This is bullish.
This morning futures are higher. Our other signals are bullish too…
- RSI levels are neutral
- The Put-to-Call Ratio is neutral
Timing:
It’s election day. Republicans are expected to take back the House and possibly the Senate. They only need one to knee-cap the President’s agenda.
Money History
On this day in 2016, the Indian government declared that 86% of its circulating currency was no longer valid.
The announcement caused chaos in the streets, and about 1.5 million jobs were lost.
In the end, the move failed to curb black market transactions as the government intended.
Watchlist:
*Low Float
^Open Position
*KLXEsupport at $14, resistance at $16
*^RELLresistance at $24
*NINE support at $6
SLS support at $5
ASC resistance at $14.20
^IMVT support at $12
NRDS support at $13
WNC resistance at $22
ELF on watch
PCVX resistance at $45
PARR resistance at $24
MGNX support at $5.50
^CROX support at $80
JUPW resistance at $1.20
RYAM on watch
PODD support at $280
VIST resistance at $14
OII support at $14
BTU support at $29
GILD support at $80