News:
A simple truth will preface today’s briefing.
The market moves because of buyers and sellers, nothing else.
With that in mind, let’s look at yesterday’s market performance…
It was unremarkable, to say the least. The market chopped around all day … The Dow Jones swung from red to green and vice-versa about a dozen times.
The swings were tame & never exceeded 1%.
In the end, the market closed mixed with a bearish lean…
- Dow Jones +0.0%
- Nasdaq -0.7%
- S&P 500 -0.5%
- Russell 2000 +0.1%
Under the surface, we found a similar theme. 43% of stocks advanced while 54% declined.
Notable Names
Tech giant Salesforce (CRM) jumped 16% in after-hours trading after reporting blowout earnings and big announcements.
- Investors cheered $20 billion in new share buybacks
- The company is disbanding its M&A team
- If the gains hold, it will add $26 billion in market cap
Shares of Tesla (TSLA^) are down 6% in premarket trading.
The market is selling the news after Elon Musk hosted Tesla’s annual “Investor Day.”
- Musk discussed his “Master Palan 3,” which was big on ideas and short on details
- During a slide show, he hinted about two new yet-to-be-revealed vehicles…
Sector Round Up
3 or 11 sectors ended in the green.
The winners…
- Energy (XLE) +2.0%
- Material (XLB) +0.8%
- Industrials (XLI) +0.4%
At the bottom…
- Consumer Discretionary (XLY) -1.3%
- Real Estate (XLRE) -1.6%
- Utilities (XLU) -1.7%
Technicals:
The S&P 500 is testing a slew of support levels…
The low volatility selloff has brought the S&P 500 to a long-term support level, the 50 & 200-day moving averages.
Our indicators show low volatility and look like a prime buying opportunity for those looking to get in on the bull run…
- The VIX is holding near 52-week lows
- RSI levels are all neutral
- The Put-to-Call Ratio remains oversold … that’s eight days in a row now
Timing:
March started on a weak note.
Typically the first day of the month is one of the strongest.
When the market fails to rally when it’s supposed to, that’s a bearish sign.
However, our watchlist is expanding as buyers continue to show a willingness to take on new risk…
Watchlist:
*Low Float
^Open Position
*CDIO on watch
*AMAM support at $6
*BLBX support at $1
*ADXN support at $2
*RRGB support at $10
TNK on watch
DUOL support at $110
RETA on watch
RCON support at $1.80
AMPY resistance at $10
NRDS support at $20
KTB support at $50
VTNR support at $9
CDTX support at $1.80
AXON support at $200
INDI support at $10
Secondary Watchlist, float 100+ million
XPRO support at $22
FSLR support at $180
SLQT support at $2, resistance at $2.60
ZETA support at $10.50
NEO support at $15
NGL on watch
RELY support at $14, resistance at $15
HIMS support at $10
NAT on watch
BGCP on watch