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4/18/23 Banks Are Booming

News:

On Monday, another big bank, Charles Schwab (SCHW), reported earnings, and the market loved what it heard.

SCHW stock jumped 4% by the close … despite the pause in share buybacks and a decline in deposits.

The move added $3.5 billion in market cap.

Image by United Construction

At the opening bell, stocks started the day lower. 

There was little conviction on either side during the majority of the session… 

But in the final hours of trading, buyers stepped up and pushed all four major indexes higher for a green close…

  • Dow Jones +0.3%
  • Nasdaq +0.3%
  • S&P 500 +0.3%
  • Russell 2000 +1.2%

Sector Round Up

The sectors ended mixed, with a bullish lean.

8 of 11 were higher at the close.

At the top…

  • Real Estate (XLRE) +2.3%
  • Financials (XLF) +1.2%
  • Industrials (XLI) +0.8%

The losers…

  • Healthcare (XLV) -0.1%
  • Communications (XLC) -0.6%
  • Energy (XLE) -1.2%

Technicals: 

The tech-heavy Nasdaq is consolidating above a critical support level…

QQQ Daily Candles – Chart by thinkorswim

Buyers are maintaining higher levels across the board, and after reviewing all the indexes, we came to a boring conclusion—the trends are unremarkable.

Simply put, the charts are dull.

And dull charts favor the bulls.

Here’s our latest reading…

Timing:

Today is the Income Tax deadline for taxpayers in the United States.

After the deadline, stocks tend to exhibit strength until the end of the month.

Right now, there is no reason stocks can’t rally into earnings season.

Watchlist:

^Open Position

SONM support at $1
ACLX resistance at $35
ALDX support at $10
CLSK support at $4
^CIFR support at $2.50
WW support at $7, resistance at $8
APLD support at $3.50
DTC support at $8, resistance at $8.50
LVO support at $1.40
VKTX support at $18
TDUP resistance at $3
EOSE support at $2.75
^EMAN support at $2, resistance at $2.40
CBAY support at $9, resistance at $10
^SQSP support at $32

Secondary watchlist—float 100+ million

^IOT support at $18, resistance at $20
TIO on watch
XERS support at $2
TGTX support at $20
RIOT on watch
^IONQ support at $6, resistance at $7
ARDX support at $4.20
NGD support at $1.20

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