4/4/22 Support Holds, Earnings Begin

News:

On Friday we welcomed April and markets closed in the green after spending much of the day trading in the red.

Remember the old saying … Amateurs open the market, the pros close it.

Oil prices are stabilizing above $100/barrel. and Bitcoin held support at $45,000.

All things considered, the month of April is off to a great start.

Technicals:

The Dow held the critical support level I was watching on Friday. See the chart below…

DIA Daily Candles – Chart via thinkorswim

If the Dow can continue to move up it will complete an inverse “head and shoulders” pattern, which is a bullish reversal.

The put-to-call ratio closed slightly oversold on Friday. Investors are betting against the rally. But is suspect they are setting themselves up for a squeeze.

My outlook remains bullish.

Timing:

As I’ve been saying the markets are generally bullish in April. This week I’m watching a few items that could drive some volatility…

The Fed will release the minutes from the March FOMC meeting on Wednesday at 2 p.m. The market will take a moment or two to price in the details behind the price hike.

Never believe the first move.

Also on Wednesday, our next earnings season will get a soft start. Here are the most notable earnings reports due out this week…

From Earnings Whispers

News is light, my outlook is bullish. My top positions are noted below…

Watchlist:

*Low Float
^Open Position

*IMTE is on watch
^*SGLY has support at 412
^NEXT has resistance at $7
PLAY has support at $48
VTNR has resistance at $10
SGML has support at $15
^GME has support at $160
BORR has support at $4
^LXU has support at $22
^GLNG has resistance at $25
SBS is on watch
TELL has support at $6
KOS has support at $7

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