5/2/23 Failed Banks Behind, FOMC Ahead


Markets gave little reaction to the latest bank failure during Monday’s session. 

The indexes opened near flat and failed to make any major change. The close was unremarkable…

  • Dow Jones -0.1%
  • Nasdaq -0.1% 
  • S&P 500 -0.0%
  • Russell 2000 +0.0%
Image from makeameme.org

Sector Round Up

The sectors split down the middle … 5 of 11 ended Monday higher.

The losers made more significant moves than the winners.

At the top…

  • Industrial (XLI) +0.5%
  • Healthcare (XLV) +0.5%

At the bottom…

  • Real Estate (XLRE) -0.9%
  • Consumer Discretionary (XLY) -1.0%
  • Energy (XLE) -1.1%

Supernova Season

There was a notable development as we ran our scan Monday evening … Low float stocks are spiking at an insane rate…

Table from thinkorswim

Outsized gains like this are typically driven by risk-on retail buying.

Your take-home …The average mom-and-pop investor is more greedy than scared right now.


Today’s chart reiterates that very point … Fear is gone from the market…

VIX Daily Candles – Chart by thinkorswim

The VIX, aka the fear gauge, is trading at its lowest level in years.

When the VIX drops below 16, investors expect daily moves in the indexes to be less than 1%.

And smaller daily moves are staples of bull markets.

Capping it all off…


Today, The Fed convenes for its two-day FOMC meeting. Tomorrow’s announcement should be interesting … pun intended.

Earnings season continues, with several big names reporting this week.

The top stocks to watch are…

  • AMD (AMD) reports after-hours today, Tuesday
  • QUALCOMM (QCOM) after-hours on Wednesday
  • Peleton (PTON) premarket on Thursday
  • Apple (AAPL) after-hours on Thursday
  • Coinbase (COIN) after-hours on Thursday
  • AMC (AMC) premarket on Friday


^Open Position

URGN support at $13
ELEV support at $2.50/$3
BZH support at $18
SONM support at $1, resistance at $1.20
APLT support at $1.60, resistance at $2
AVDL support at $11
CRS support at $51
SKYW on watch
LVO support at $1.50
SA resistance at $14
^TDUP support at $2.50
CBAY support at $10

Secondary watchlist—float 100+ million

TIO on watch
TGTX on watch
RIOT support at $10, resistance at $12
HIMS support at $10.50, resistance at $12
GGG on watch
NYCB support at $10

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