News:
Despite all the bullish indicators in play on Friday the markets tanked. The financial media has laid the blame at the feet of Fed Chair Powell.
During a discussion hosted by the IMF, he said, “it is appropriate in my view to be moving a little more quickly.” The market interpreted this as a signal that a 50-point rate hike is coming soon.
Powell’s hawkish tone was widely expected. But the closer we come to the May FOMC the fewer buyers to be found.
One stock that is up, is Twitter (TWTR^). The Wall Street Journal is reporting that Elon Musk and the board could ink a deal as soon as this week according to “people familiar with the matter.”
Across the pond, French President Emmanuel Macron is projected to defeat Marine Le Pen, a candidate described by the New York Post as “a female Trump.”
Macron’s victory was expected.
Technicals:
Despite the intensity of Friday’s sell-off, I expect the drop to be short-lived.
All four major indexes as nearing oversold RSI levels. The put-to-call ratio is already extremely oversold. And the VIX is likely to face resistance in the high 30s (if it gets that high).
I’m not trying to catch a falling knife…
But I’m not getting scared out of any positions either.
Timing:
It’s the last week of April.
April is typically the best month for stock, but 2022 has defied the odds.
The market will be digesting a fresh set of earnings this week. The most anticipated can be found here.
Powell will lead the FOMC meeting next week. The two-day meeting will finish on Wednesday. Expect another rate hike … Up to 0.5%.
Watchlist:
*Low Float
^Open Position
*HPK has support at $35
*BLBX has support at $4
*MDVL has resistance at $3
TRVI has support at $3
^CYN has support at $2
TH has support at $6
AMPY has support at $6.50
^SGML has support at $15
FPI has support at $14 & $15
REI has support at $4
CXW has support at $12
^TWTR is on watch