News:
Markets opened the short week to a second day of losses.
The indexes each post modest declines…
- Dow Jones -0.7%
- Nasdaq -0.2%
- S&P 500 -0.5%
- Russell 2000 -0.5%
Overbought conditions are finally starting to fade as the market returns to balance…
Sector Round Up
10 of the 11 sectors ended Tuesday lower.
Gains in Tesla (TSLA^) +5.4% held the Consumer Discretionary (XLY) +0.8% sector.
At the bottom…
- Utilities (XLU) -1.2%
- Materials (XLB) -1.4%
- Energy (XLE) -2.2%
Notable Names
The price of Bitcoin^ continues to rise. It’s risen more than 15% since reaching a local bottom on June 15th.
The reason? Classic supply and demand…
- According to Glassnose, supply is on the decline as investors HODL
- Mining difficulty is at an all-time high as demand continues to grow
- At writing, 1 bitcoin is valued at $28,900
Shares of Tesla (TSLA^) are up a whopping 170% since the beginning of the year. The share price climbed 36% since the start of June.
The latest reasons…
- The company is opening its charging network to competitors
- After meeting with India’s leader, Elon Musk is reportedly planning to build a Tesla factory in the world’s fastest-growing economy
- At writing, Tesla’s market cap is $870 billion
Technicals:
Overbought conditions are fading but aren’t gone yet.
The Nasdaq continues to push the bounds of its RSI level…
The market appears to be searching for balance. The lack of a panicked sell-off bodes well for the bulls.
Your latest readout…
- The VIX is holding near 3-year lows
- RSI levels, the Nasdaq remain overbought, the other indexes are neutral
- The Put-to-Call Ratio is neutral
Timing:
Today is the first day of summer.
A quick reminder that the summer rally is traditionally the weakest rally for the market.
Last year’s summer rally ended abruptly in August, and the S&P 500 declined about 20% over the following two months.
Watchlist:
*Low Float
^Open Position
*PPSI on watch
*^GSIT support at $8
INOD support at $12
AAOI on watch
GASS support at $3.60
^CIFR resistance at $3
SYM support at $45
^PLAB support at $23
HEPS support at $1.40
BTBT support at $3.50
^AI support at $40
NVTS support at $9, resistance at $10
MRNS support at $9
Secondary watchlist—float 100+ million
NEXT on watch
^IOT support at $28
TMC resistance at $1.40
GOL support at $4.50
JOBY support at $7
RKLB support at $5.50, resistance at $6
^PLTR resistance at $16