News:
Wednesday’s price action was muted on Wall Street.
The FOMC minutes were released without much whiplash.
The major indexes traded within 1% of the previous day’s close the entire day.
Indexes ended the day mixed. Buyers favored the riskier stocks…
- Dow Jones -0.2%
- Nasdaq +0.1%
- S&P 500 -0.2%
- Russell 2000 +0.3%
Sector Round Up
The sectors followed the indexes. All 11 closed within 1% of Tuesday’s close. And only three sectors ended the day with gains.
The winners…
- Materials (XLB) +0.8%
- Consumer Discretionary (XLY) +0.5%
- Communications (XLC) +0.2%
At the bottom…
- Energy (XLE) -0.7%
- Real Estate (XLRE) -0.9%
China—What’s Going On?
The Wall Street Journal’s lead story this morning, citing “U.S officials,” says China is considering supporting Russia with weapons in the Ukrainian war.
It was easy to be tough on Russia when they didn’t have the backing of the world’s largest standing army.
The Biden administration has tricky waters to navigate between the ongoing war and the spy balloon … It is working to strike a balance economically with its largest trading partner.
Remember…
Uncertainty favors the bears.
Notable Names
Cyber security giant Palo Alto Networks (PANW) exploded 13% higher after blow-out earnings.
- The company showed year-over-year revenue growth of 26%
- Forward-looking guidance suggested another 20+% growth in the year ahead
- Buyers added $6.3 billion in market cap
“Space products” manufacture Intuitive Machines (LUNR) jumped another 117% during Wednesday’s session.
- The recent SPAC-closing rocketed higher in an apparent short squeeze
- Share prices spiked nearly 1,500% over the past 5 trading sessions
- Aside from a short squeeze, there is no clear catalyst for the massive move
Technicals:
The VIX failed to hold above major resistance…
We’ve been eyeing 22.50 as a critical level for months. As long as this level holds, the bulls have the upper hand.
The market and the world face a lot of uncertainty … But without fear, the market won’t collapse.
Despite all the headwinds, the market is not showing genuine signs of fear yet.
We’ll continue to monitor our indicators…
- RSI levels are all neutral
- The Put-to-Call Ratio remains oversold
Our outlook remains neutral, leaning bullish.
Timing:
At 8:30 AM today, we’ll get 3 big reports…
- Revised Q1 GDP data this morning
- Weekly unemployment filings
**This section has been edited from an earlier version**
Watchlist:
*Low Float
^Open Position
*AMAMsupport at $4
*ADXN support at $1.60
*LUNR on watch
GRIL support at $1.20
SERA support at $3
AVDL support at $9
AN support at $140
NRDS support at $18
QNST support at $16, resistance at $18
VKTX support at $11
INDI support at $10
TDC support
SLQT support at $2
MGNI support at $13, resistance at $14
RBBN support at $4
CSTM resistance at $16
NYT support at $40
MIR support at $9