News:
China is reporting a significant increase in Covid cases, the highest levels since the initial outbreak in March of 2020. According to reports, it is due to the Omicron variant.
In the states, the CDC now says that 98% of Americans can return to life as normal. But China is very different with their no covid policy appearing to finally fail.
Markets sold off as word of new lockdowns spread across. Oil dropped back below $100.
The global economy is just fine without Russia. The world’s marketplace needs China for now.
In other news, the EU voted NOT to ban crypto.
And Elon Musk challenged Russian President Vladimir Putin to “single combat.” The Kremlin responded calling him a “weak.”
Markets are focused on basics … food and farming stocks are the hottest in the market. Examples: AGRI, YTEN
Technicals:
Futures are gapping down this morning.
The short-term bottom I called out is being tested today.
I’m not as concerned about where the markets open as to where they close.
The sell-off is controlled and volatility remains in check. If support fails to hold today look out below. We could continue to sell-off well into summer.
Timing:
The Fed’s FOMC meeting convenes today. Powell will hold his press conference tomorrow at 2 p.m.
All eyes are on the Fed. The market loves Powell, we will see if that remains true…
Watchlist:
*Low Float
^Open Position
*ARTW is on watch
^*SGLY has resistance at $8
CVI has support at $23
TH has support at $5.50
HDSN has support at $5, resistance at $6
VYGR is on watch
AMPY has resistance at $6.25
AMPH is on watch
LXU has support at $20
FLR has support at $28
NLSN is on watch