After trending lower for the past month, markets got a serious boost on Thursday.
At the open, most stocks were trading in the red. But buyers showed their willingness to buy as soon as the opening bell rang.
Between 1 & 2 PM, all the indexes moved into the green and climbed into the close…
- Dow Jones +1.0%
- Nasdaq +0.7%
- S&P 500 +0.8%
- Russell 2000 +0.2%
The latest unemployment claims data showed no weakness in the labor market.
Crypto’s Latest Casualty
Notably absent from yesterday’s rally were Bitcoin^ and the crypto market.
Shares of crypto-friendly Silvergate Bank (SI) fell 58% as clients, including Coinbase (COIN) & Crypto.com, announced they were ending operations with the bank.
- The company delayed a regulatory filing and hinted that bankruptcy was possible
- Bitcoin slid 5% in the immediate aftermath
- We remain bullish long-term on Bitcoin & continue to buy
Sector Round Up
Most, 9 of 11, sectors ended Thursday in positive territory.
At the top…
- Utilities (XLU) +1.9%
- Consumer Staples (XLP) +1.4%
- Real Estate (XLRE) +1.3%
The two losers…
- Consumer Discretionary (XLY) -0.3%
- Financials (XLF) -0.5%
We’re gonna repost yesterday’s chart with Thursday’s candle added.
Absent of significant news, these simple little lines can tell savvy traders the best time to buy…
As we said, yesterday was “a prime buying opportunity for those looking to get in on the bull run.”
This morning the stars are aligning for that run…
Yesterday’s candle is a clear bullish engulfing pattern that occurred at a culmination of import support levels.
- The VIX is falling & is at its lowest level in two weeks
- RSI levels are all neutral
- The Put-to-Call Ratio remains oversold … that’s nine days in a row
March of pre-election years is traditionally the strongest month in the entire four-year election cycle.
We bought heavily into October’s low and have moved our stop up to yesterday’s lows. If the market fails to rally when it should, that’s a bearish sign.
This morning we’re as bullish as we’ve ever been
*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
OSPN on watch
AMPY resistance at $10
NRDS support at $20
KTB support at $50
VTNR support at $10
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
NEO support at $15, resistance at $17.50
NGL on watch
RELY support at $14, resistance at $15
HIMS support at $10
NAT on watch
GOTU resistance at $4.50
BGCP on watch