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.
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
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
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…
We remain bullish as critical support levels, thus far, are holding.
Our indicators offer no alternate theory…
- The VIX continues to trend lower
- RSI levels are all neutral
- The Put-to-Call Ratio is neutral
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.
*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