fbpx

3/6/23 All Aboard! The Bulls Are Leaving the Station

News:

On Friday, it was all green all day as FOMO ripped through the market, and bidders happily took whatever price they could get.

All four indexes finished the day sharply higher…

  • Dow Jones +1.2%
  • Nasdaq +2.0%
  • S&P 500 +1.6%
  • Russell 2000 +1.3%

A whopping 78% of stocks ended Friday with gains. 

The S&P 500 heat map reveals a sea of green…

Chart by Finviz

Sector Round Up

All 11 sectors ended Friday in positive territory. The last time that happened was February 1.

At the top…

  • Communications (XLC) +2.2%
  • Consumer Discretionary (XLY) +2.2%
  • Technology (XLK) +1.7%

At the bottom…

  • Healthcare (XLV) +1.1%
  • Industrials (XLI) +1.1%
  • Consumer Staples (XLP) +0.1%

The three “risk on” sectors were grouped tightly at the top. While the “safer” sectors were bringing up the rear … This is a classic sign of a bull market.

Technicals: 

If you’re looking for risk, look no further than the Russell 2000.

Its chart shows a retest of a support zone and a new confirmation breakout…

RUT Daily Candles – Chart via thinkorswim

The chart demonstrates how support and resistance are often zones and not distinct lines.

Note the orange marks too. Over the past year, the bulls established a double bottom and higher lows.

Now that the breakout is confirmed, bears appear to be in full retreat.

Timing:

Fed Chair Powell will be testifying before a couple of Congressional committees this week. 

Not expecting much market reaction on that front … Historically, lawmakers do more grandstanding than serious question-asking.

Earnings will continue to roll in. Here are the top stocks we’re watching…

  • Lordstown (RIDE) Monday premarket
  • Crowdstrike (CRWD) Tuesday after hours
  • SoundHound (SOUN) Tuesday after hours
  • JD.com (JD) Thursday premarket

Watchlist:

*Low Float
^Open Position

*CDIO on watch
*AMAM support at $6, resistance at $7
*BLBX support at $1
*RRGB support at $10
*XPOF support at $28
HRTG support at $3.50
RCON support at $1.80
OSPN on watch
AMPY resistance at $10
NRDS support at $20
VTNR support at $10
INDI support at $10
^AI support at $27.50

Secondary Watchlist, float 100+ million

IOT support at $18
^SLQT support at $2, resistance at $2.60
ZETA support at $10
NEO support at $17.50
NGL on watch
RELY support at $15
HIMS support at $10
ARDX support at $3.40
NAT on watch
GOTU resistance at $4.50
BGCP on watch

Leave a Comment

Your email address will not be published. Required fields are marked *