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12/22/23 Back Where We Started

News:

Q3 GDP was revised down on Thursday.

Annualized growth clocked in at +4.9%. 

  • Down from 5.2% in November 
  • Equal to the advance estimate released in October
Chart from BEA

The indexes took the news in stride.

Buyers regained much of the lost ground from Wednesday’s abrupt selloff…

  • Dow Jones +0.9%
  • Nasdaq +1.3%
  • S&P 500 +1.0%
  • Russell 2000 +1.7%

Sector Round Up

All 11 sectors ended Thursday in positive territory.

At the top…

  • Consumer Discretionary (XLY) +1.5%
  • Healthcare (XLV) +1.2%
  • Technology (XLK) +1.1%

At the bottom…

  • Consumer Staples (XLP) +0.7%
  • Energy (XLE) +0.4%
  • Utilities (XLU) +0.2%

Technicals: 

The Russell 2000 is trying to hold on to its 52-week highs…

RUT Daily Candles – Chart from thinkorswim

The “January Effect” typically brings strength to the small caps. 

The critical level of 2000 offers an excellent risk-to-reward entry point. We remain long TNA from the October bottom.

Your latest readout…

Timing:

This morning at 8:30, we’ll get the final PCE inflation report of the year. 

PCE is the Fed’s preferred measure of inflation.

After the close, we’ll go into a long weekend. Markets are scheduled to reopen on Tuesday, December 26th.

Watchlist:

*Low Float
^Open Position

*IMMX support at $7
*OPFI support at $4, resistance at $4.50
*PLSE support at $11
*SHFS support at $1
CRGX support at $18
FUSN support at $6
CENX support at $12
ARBK support at $2.50
LQDA on watch
SPH on watch
ABSI support at $3, resistance at $3.50
ASPN support at $14
PRCH support at $2.25
SCS support at $13

Secondary watchlist—float about 100 million

ESPR support at $2
RKT
on watch
^GPS support at $20
MOR support at $9
NMRK support at $10
BVN on watch
S support at $26
LYFT support at $13, resistance at $16

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