Markets closed January on a strong note. The Nasdaq led the charge with a gain of 3.4%.
Many of the stocks I mentioned yesterday spiked. It’s good to see some risk-on behavior. The gamblers might be coming back!
Oil and energy stocks are outperforming as Europe prepares for conflict with Russia. Being that Russia is a huge supplier of gas to Germany an invasion of Ukraine would complicate the deal.
Markets no longer appear oversold as many of the technical readings are now neutral.
The top three indexes broke out of consolidation. I’m watching for confirmation and continuation. The Russell 2000 is still lagging behind.
Bull markets don’t usually have 3%+ rallies. So I’m remaining cautious. Especially given the timing…
February is the weak link in the best six months.
So despite yesterday’s rally, I’m not overly bullish on the broader markets.
It’s the first of the month, which is typically a bullish day. But after yesterday’s strength, the buyerS could get sold into hard.
I’m slightly bullish but remain risk-off.
*KSCP is on watch
DAVE has support at $10
^LLNW has support at $4
GRPN has support at $28.50
EXTN has resistance at $5
EGY has support at $4.30
GLNG has support at $14