5/20/22 Americans Are Working, Stocks Point Higher

News:

Yesterday the big three indexes closed in the red. But they failed to tell the whole story.

The S&P 500 is less than a 2% decline away from official bear market territory. But the Russell 2000 actually closed in the green. And about 53% of the 8000+ listed stocks closed higher too.


Image from Finviz.com

This is why we always look beyond the indexes.

New unemployment filing numbers were released yesterday morning. They were in line with expectations. 

One interesting figure from the report was the number of people collecting unemployment fell to its lowest level since 1969.

The data tells us that despite higher inflation and supply chain issues, companies are hiring and people are working.

On a related note, consumer staples fell further as retailers Walmart (WMT) and Target (TGT) continued their slide losing 3% and 5% respectively.

Technicals:

Markets are gapping up this morning after the S&P 500 and the Dow made new lows for the year yesterday.

The number of stocks below their 50 and 200-day moving averages are unsustainable low.


Image from Finviz.com

RSI levels are neutral while the put-to-call ratio is extremely oversold, even more so than yesterday.

As long as the VIX stays below 35 the downside potential is limited.

Short sellers and put buyers could be setting a bear trap.

Timing:

Today is the May options expiration.

Looking back at the last 21 years 14 have ended the positive.

Watchlist:

*Low Float
^Open position

^*TNXP is on watch
TNK is on watch
TRMD
is on watch
^HDSN has support at $9
LPG has support at $15
SIGA is on watch
GFF has support at $29
VTNR has support at $14, resistance at $15
^VERU has support at $14
BORR has support at $5
HRB is on watch
UNM has resistance at $37, support at $34

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