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6/20/23 Rebalancing & Risk-On

News:

On Friday, markets took a breather ahead of the long weekend.

The indexes post modest losses…

  • Dow Jones -0.3%
  • Nasdaq -0.7% 
  • S&P 500 -0.4%
  • Russell 2000 -0.7% 

Markets are finally beginning to retreat from overbought conditions. A dip was to be expected as markets always seek balance.

Image by Travis Ruskus

Sector Round Up

The markets declined without any sign of panic. In fact, 3 of the 11 sectors ended the session higher.

And no sector ended Friday’s session with a move of more than 1%.

At the top…

  • Utilities (XLU) +0.5%
  • Materials (XLB) +0.3%
  • Consumer Staples (XLP) +0.1%

At the bottom…

  • Financials (XLF) -0.2%
  • Technology (XLK) -0.8%
  • Communications (XLC) -0.8%

Technicals: 

Over the long weekend, Bitcoin^ held a critical support level at $25,000.

Bitcoin Daily Candles – Chart by Barchart

The retest of this level shows that the market is still bullish. And the fact that it’s in Bitcoin, tells us the market is craving risk-on bets.

Your latest readout…

Timing:

Coming off the long weekend, the market has little to look forward to.

Fed Chair Powell is scheduled to give testimony to 2 congressional committees this week.

Aside from that, the news cycle is expected to be slow as we look forward to July.

Watchlist:

*Low Float
^Open Position

*UTME support at $2.40
*PPSI on watch
*^GSIT support at $8
UP support at $3
INOD support at $10, resistance at $12
AAOI on watch
^CIFR resistance at $3
SYM on watch
OPRA support at $19
^PLAB support at $23
CBAT support at $1.30
HEPS support at $1.40
UPST support at $35
^AI support at $40
CVNA support at $20, resistance at $26
NVTS support at $9, resistance at $10
MRNS support at $9

Secondary watchlist—float 100+ million

ENVX support at $15
NEXT on watch
^IOT support at $28
TMC resistance at $1.40
GOL support at $4.50
ABCM on watch
JOBY support at $7
RKLB support at $5.50
^PLTR support at $16
CCL on watch

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