Friday belonged to the bears. Markets opened near flat and never found any serious buyers. Stocks moved lower throughout the day.
At the close, the indexes were all deep in the red…
- Dow Jones -1.2%
- Nasdaq -0.7%
- S&P 500 -1.1%
- Russell 2000 -2.6%
Over the weekend, Swiss-based bank UBS (UBS) acquired its struggling neighbor Credit Suisse (CS) for $3+ billion.
The $3 billion deal is a 75% discount from CS’s pre-turmoil market cap of $12 billion and a 56% discount from Friday’s close.
Swiss regulators engineered the deal, and investors aren’t pleased…
- Shares of UBS are down 9% in premarket trading
- In Asia, the Hang Seng is down nearly 3% at writing
- Futures here in the States are red but near flat
Sector Round Up
All 11 sectors ended Friday lower.
Shedding the least…
- Technology (XLK) -0.4%
- Consumer Staples (XLP) -0.7%
- Communications (XLC) -1.0%
At the bottom…
- Industrials (XLI) -1.6%
- Real Estate (XLRE) -2.2%
- Financials (XLF) -3.2%
^Bitcoin’s Bull run continued over the weekend. It peaked above $28,000 for the first time since June 2022. The spike is an increase of 43% from its most recent dip 10 days ago.
As investors and the public lose faith in the established banking system, investors and speculators have been flocking to the 14-year-old digital asset.
This morning, 1 bitcoin will cost you $28,400 US Dollars.
We continue to accumulate on a weekly basis.
This week the S&P 500 is facing converging resistance levels. That’s not a good sign for the bulls.
As we see it, there are too many headwinds for the bulls in the current environment.
We’ll continue to monitor all the signs…
- The VIX remains elevated
- RSI levels are mostly neutral … the Russell 2000 is oversold
- The Put-to-Call Ratio marginally oversold
We are maintaining our short position, which is currently showing a profit.
This week the second FOMC meeting of 2023 will convene on Tuesday.
On Wednesday afternoon, The Fed will announce the new interest rate.
The direction the Fed will head is anyone’s guess…
ELEV on watch
^CIFR support at $2, resistance at $2.50
DKS support at $140
MGNX resistance at $7
DTC support at $6
EMAN on watch
^INDI support at $10
SQSP support at $25, resistance at $28
IOT support at $18
FSLY resistance at $16
RELY support at $15, resistance at $16
RIOT support at $8
ARDX support at $3.50, resistance at $4.10