12/2/22 The Bankruptcy Heard Around The World (Not FTX)


Thursday was a mixed day on Wall Street. Markets welcomed December without much conviction from the bulls or the bears.

Major indexes ended the day mixed and near flat…

  • Dow Jones -0.6%
  • Nasdaq +0.1%
  • S&P 500 -0.1%
  • Russell 2000 -0.3%

The latest unemployment filings remained elevated but within an expected range.

Photo from Getty Images

The divide between advancers and declined was nearly an even split at 51% and 45%, respectively.

Sector Round Up

5 of 11 sectors ended the day green.

9 sectors closed within 0.5% of yesterday’s close.

The exception at the top…

  • Communications (XLC) +0.6%

The exception at the bottom…

  • Financials (XLF) -0.6%


The VIX made a new local low. Last time it traded this at these levels was August 18th.

VIX Daily Candles – Chart via thinkorswim

The rising support we called out earlier this week failed to hold up. This is bullish.

No other significant reading to share today…


This morning we’ll get the November Jobs report at 8:30 am.

A reminder from our outlook … December usually starts weak and finishes strong. History says wait to place bullish bets until about halfway through the month.

A Bankruptcy To Remember

On this day in 2001, Enron declared bankruptcy.

Image from Wikipedia

Before the collapse…

  • Fortune Magazine called it “America’s Most Innovative Company” six times in a row.
  • The Financial Times Declared it “The Energy Company of the Year” in 2000
  • The company’s market cap reached $60 billion

Months after the dot-com bubble burst, internal whistleblowers alerted auditors to “creative accounting” … investor lawsuits, and SEC investigations followed.

  • Investors in the company lost nearly everything
  • Many executives went to prison

This former Wall Street darling is worth remembering because it fell from grace in spectacular form. And just like FTX, everything appears to be fine from the outside looking in before it fell.


*Low Float
^Open Position

*USEA support at $3
*BBW support at $22
*NINE support at $10, resistance at $11
TITN on watch
PDSB resistance at $9, support at $8
AVDL support at $9
PBYI support at $4
WNC support at $24, resistance at $26
RCUS support at $31
^MANU resistance at $23
FIVE on watch
GRWG support at $7
ONCY support at $2
^CROX support at $100
^RYAM support at $7, resistance at $8
CPRX support at $16
YEXT support at $6
GEO support at $12
MNSO support at $11
TME on watch
GILD support at $86

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