6/7/23 You Could Corner This Market


On Tuesday, markets opened in the red.

The bears have been growing more aggressive, according to a recent Wall Street Journal report. The report points to certain bearish bets that are at their highest levels since 2007.

Despite the headwind, markets flipped green, and the indexes all ended the day higher.

  • Dow Jones +0.0%
  • Nasdaq +0.4% 
  • S&P 500 +0.2%
  • Russell 2000 +2.7%

Crypto Crackdown Continues

One day after filing charges against Binance, the SEC sued Coinbase (COIN), alleging it “deliberately refused to follow” federal laws.

Image from Coinbase
  • The SEC said Coinbase has “[earned] billions … at the expense of investors”
  • This time the market took the news in stride
  • At writing, 1 bitcoin costs $26,700–Not far from Sunday’s pre-crackdown price
  • We remain long Bitcoin and bullish on its long-term usefulness

Sector Round Up

The sectors leaned bullish on Tuesday. 7 of 11 ended the day with gains.

At the top…

  • Consumer Discretionary (XLY) +1.3%
  • Financials (XLF) +0.7%
  • Communications (XLC) +0.7%

At the bottom…

  • Healthcare (XLV) -0.5%
  • Technology (XLK) -0.6%
  • Consumer Staples (XLP) -0.9%

Squeezing The Pros

Yesterday the S&P 500 reached its highest level of the year.

Image from Wikipedia

And retail investors have been pouring money into the market in 2023.

With bearish bets surging, FOMO could drive a corner in the market and squeeze the bearish bets out. If that were to happen, markets would surge higher. 


From a chart reader’s perspective, this is the perfect time to short the market.

The S&P 500 is at a well-defined resistance level, and its 10-day RSI is nearing overbought…

SPY Daily Candles – Chart by thinkorswim

However, we are avoiding short bets because the trade is already overcrowded, and the downside potential is minimal.

The market is primed to squeeze higher, in our opinion.

Your latest readout…


One week from today, the market will have the latest FOMC decision to digest.


*Low Float
^Open Position

*UTME support at $2
*WLDS support at $1.80, resistance at $2
*VIRI support ta $1.40
*GSIT support at $6.50, resistance at $7
INOD support at $11, resistance at $12
AEHR support at $40
AMTX support at $6
EFTR support at $1.20
NNOX support at $20, resistance at $22
KOD support at $9
OPRA on watch
BHVN support at $20
APLD support at $9, resistance at $10
^PLAB support at $22
UPST support at $30
CGEN support at $1.20
^AI support at $30
NVTS support at $8
MRSN support at $8

Secondary watchlist—float 100+ million

EVLV support at $6
ZUO on watch
CXM support at $14
OSCR support at $8
^IOT on watch
^MVIS on watch
JOBY support at $6
^PLTR resistance at $15

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