3/30/22 Russell Breakout Led by Meme

News:

The markets roared higher again yesterday. Small caps outperformed as the Russell 2000 led the way higher, gaining 2.6%.

AMCGME,^ & TSLA^ were all in play again. The momentum behind AMC and GME has slowed. Both sit below their critical resistance levels at writing.

HOOD is allowing its users to join the rest of the civilized world and trade during extended hours. Revenues are down and it needs to do something. Shares popped about 25% on the news.

The world is keeping an eye on the Russia/Ukraine crisis still. Oil prices remain well above $100 per barrel. The current conflict is priced in. But new developments could bring volatility to the market again…

Technicals:

Markets still look generally strong.

The Russell 2000 is showing a technical breakout as the number of stocks trading above their 200-day moving average climbed above 40% for the first time since January 19th.

IWM Daily Candles – Chart via thinkorswim

I’m watching ticker TNA to play this trend. No position yet.

RSI for the SPY and QQQ is just barely overbought. Could be a sight that the market needs a breather.

But I see this as part of a healthy market rotation.

Timing:

In a healthy bull market the large caps, led by the Dow Jones and the S&P 500 typically head higher first. The Nasdaq, loaded with tech can often outperform.

Once those three indexes establish positive uptrends the small caps tend to “catch up” in a later rally.

Everything I’m seeing right now says this is exactly what’s happening.

I’m still crazy bullish. Positions are noted below.

Watchlist:

*Low Float
^Open Position

^*CELZ has support at $3.50
^*WAVD has support at $5.50
^*AGRI has resistance at $4
^*SGLY has support at $12
*HMLP has support at $7
^RKDA has resistance at $2
TRVI has support at $2.50
FLNG has support at $26
EIGR has resistance at $10
^NEXT has support at $5.50
DLNG has resistance at $4.25
PLAY has support at $48
^GME has resistance at $200
CRK has resistance at $13
^LXU has support at $20
^BBBY has support at $25
^GLNG has resistance at $23
AMC has resistance at $30

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