12/21/22 Turn Around Day & Bottoming Action


The major indexes snapped their losing streaks on Tuesday. Each posted a small gain.

  • Dow Jones +0.3%
  • Nasdaq +0.0%
  • S&P 500 +0.1%
  • Russell 2000 +0.5%
Image from CSU

The reason?

The market looks like it’s running out of sellers.

But the bulls failed to deliver a decisive victory … Only 53% of stocks advanced, while 43% declined.

Sector Round Up

The sectors ended the day mixed as well. 7 of 11 closed green.

At the top…

  • Energy (XLE) +1.5%
  • Communication (XLC) +0.7%
  • Materials (XLB) +0.7%

At the bottom…

  • Consumer Discretionary (XLY) -1.1%
  • Real Estate (XLRE) -0.2%

Notable Names

Images from Sneaker News, China Daily, & electrek

Shares of Nike (NKE) rose 12% in after-hours trading.

  • The fitness giant raised its revenue outlook
  • Reported discounts have helped clear out inventory
  • If the gains hold, it will add $16 billion in market cap

China pledged a “return to normalcy” by spring.

  • The announcement came via state-run media.
  • It cited the Omicron variant’s “lower risk” as a reason for the policy change.
  • Public resistance to “zero-Covid” policies certainly helped drive the change

Shares of Tesla (TSLA^) fell to a new 2-year low yesterday

  • The catalyst of the day was an analyst downgrade
  • CEO Elon Musk has pledged to step down as CEO of Twitter 
  • However, he plans to remain on as the leader of the “software & servers teams”
  • The stock is down 66% from all-time highs
  • Tesla has shed over $800 billion in market cap in the past 12 months


Yesterday we showed you the Nasdaq’s triple bottom forming.

Today let’s see what the Dow Jones is doing…

DIA Daily Candles – Chart via thinkorswim

You can see a nice tight area of consolidation forming.

Similar patterns accompanied the bottoms in June and October.

Our top signals show the market is free to move in the direction of least resistance…


2023 is now 7 trading days away.


*Low Float
^Open Position

*SISI resistance at $3
*GAME support at $1.25
*EVER support at $12
MDGL on watch
CABA support at $7
SMMT resistance at $4.50
TERN support at $8
PBYI resistance at $5
YQ support at $2
PLX support at $1.25
ETNB support at $10
CLDX support at $40
VRNA on watch
^CROX support at $90
^PRQR support at $1.50
IE support at $12.50
VKTX on watch
WVE support at $5
TOUR support at $1.75
CPRX support at $18

Secondary watchlist, float 100 million & up…

MOMO support at $8
EXAS support at $50
GOTU on watch
TGB support at $1.45
TAL on watch
SMFG on watch

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