2/14/23 How High is Too High?


Monday opened with a bang and belonged squarely to the bulls. All of the 4 major indexes ended the day sharply higher…

  • Dow Jones +1.1%
  • Nasdaq +1.5%
  • S&P 500 +1.1%
  • Russell 2000 +1.2%

Sector Round Up

It was hard to find a seller. 10 of 11 sectors ended the day higher.

Image from Auction Nudge

At the top…

  • Technology (XLK) +1.7%
  • Consumer Discretionary (XLY) +1.5%
  • Communications (XLC) +1.4%

The lone decliner…

  • Energy (XLE) -0.3%, which was coming off a strong rally on Friday

Notable Names

Shares of Palantir (PLTR), a software provider to the CIA, are trading 18% higher this morning. The company reported blow-out earnings after the closing bell.

  • Q4 was the company’s first profitable quarter
  • Described demand for its products as “unrelenting”
  • The CRO mentioned “ChatGPT” by name as AI continues to be a hot topic on Wall Street
Photo from Getty Images

Former meme stock ContextLogic (WISH) surged 37% during yesterday’s session and another 20% after the closing bell.

  • Short seller, Citron Research, called it the “most asymmetrical opportunity in the market” in a series of tweets.
  • Citron cited strong management, including veterans from tech giants
  • Financially the company has “$832M in cash as of Q3, no debt, and an untapped $280M credit line”
  • This is a high-risk stock with a lot of potential
  • We’ll likely establish a small position during today’s trading session


The Russell 2000, which tracks some of the riskiest stocks in the market, turned exactly where we said it would…

RUT Daily Candles – Chart via thinkorswim

We remain bullish as critical support levels, thus far, are holding.

Our indicators offer no alternate theory…


This morning at 8:30, the latest inflation data comes out in the CPI report.

The lower the number, the more likely a Fed pivot is near.

While technicals can tell us what the market is thinking, news and data can change that outlook in a second.

We’ll be watching the market’s reaction and will bring you a complete analysis in the morning.

Remember this … never trust the first move.


*Low Float
^Open Position

*XPON resistance at $4
*RMTI support at $2.20, resistance at $2.50
*BBAIsupport at $4
*LICN on watch
*CJJD resistance at $7 or 8
*IVDA support at $2.20
BLBD on watch
BSGM support at $1.20
AVRO support at $1.60
QNST support at $16
CBAY support at $8
CDTX support at $1.60
VKTX support at $10, resistance at $11
TDC resistance at $40
NCL on watch
SONO support at $20
NYT support at $38
KD support at $14, resistance at $16

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