News:
On Friday, the markets bounced up from extremely oversold conditions. The tech-heavy Nasdaq led with a gain of 3.8%.
MarketWatch described the mood near the close as “panic-like buying.”
The best catalyst came from overseas where China is seeking to lift the lockdown restrictions in Shanghai. The latest report from Reuters points to a June 1 “return to normal.”
Twitter (TWTR^) fell nearly 10% after Musk declared his takeover bid was placed “on hold.”
Notable winners from Friday’s rally are Affirm (AFRM) +31.4%, Duolingo (DUOL) +34.0%, and Robinhood (HOOD) +24.9%.
Technicals:
Most indicators are neutral. The VIX is still at a relatively high level, which favors the bears.
VIX Daily Candles – Chart via thinkorswim
I’d like to see the uptrend broken just like we saw back in March.
Timing:
It’s still earning season. This week is filled with retail sales. Walmart (WMT) reports on Tuesday, Lowe’s (LOW^) on Wednesday, and Footlocker (FL) on Friday.
See all the most anticipated earnings listed here.
Options expiration is on Friday.
I believe we have reached the bottom. I’m a net buyer for the rest of the summer. My hold times are months long.
Watchlist:
TRMD has support at $11
HDSN has support at $8
LPG has support at $15
VTNR has support at $12
R has resistance at $85
VERU is on watch
BORR has resistance at $5
STKL is on watch
FRGE is on watch
HRB is on watch
UNM has support at $34
^Open Position