Markets open higher on Wednesday. Several positive developments helped the market rally…
- Micron (MU) reported lousy earnings but positive guidance
- MU stock popped more than +7%, leading the charge in semiconductor stocks
- Positive housing data continues to roll in
As the day wore on, Congress finished a second day of hearings on the collapse of Silicon Valley Bank.
- Congress showed little willingness to take action
- They, instead, pointed fingers at regulators
- The House Financial Services Chairman said, “Congress can’t legislate competence”
All the major indexes held their initial gains and climbed into the close…
- Dow Jones +1.0%
- Nasdaq +1.8%
- S&P 500 +1.4%
- Russell 2000 +1.1%
Sector Round Up
The rally was broad on Wednesday. All 11 sectors ended the day with gains.
At the top, risk-on stocks…
- Real Estate (XLRE) +2.4%
- Technology (XLK) +2.1%
- Consumer Discretionary (XLY) +1.9%
At the bottom, defensive stocks…
- Healthcare (XLV) +0.6%
- Consumer Staples (XLP) +0.3%
The most robust sector in the market is Technology.
Take a look at the chart…
If the market is going to rally, Technology looks like it’s leading the way.
Some of the themes we’ve seen over the past year include…
Energy Crisis … Solar stocks
Cyber Crime … Cyber Security stocks
Need an expert … AI stocks
Our top indicators are pointing bullish.
- The VIX fell to its lowest level since the bank crisis began
- RSI levels are all neutral
- The Put-to-Call Ratio returned to neutral
We have begun buying calls to hedge our short positions. Our short positions remain intact at 25% of full trade size (starter position).
Tomorrow’s newsletter will include your complete April outlook.
Notably absent from the list is an FOMC meeting. The committee meets 10 times per year, and April is the first month of 2023 without one.
*BANL on watch
*BLPH support at $7, resistance at $8
*BMEA on watch
CMPR support at $40
^AEHR support at $35
JFIN support at $3.60
PYXS on watch
TERN support at $11
INZY support at $4
ALDX support at $9
NAAS on watch
DTC resistance at $7
VKTX support at $12
NRDY support at $4
ACCD resistance at $14, support at $13
^SQSP on watch
^IOT resistance at $18
KC on watch
AUPH on watch
RELY support at $16
RIOT support at $8, resistance at $10
ARDX on watch
OSCR support at $6