News:
Markets failed to pick a direction during Wednesday’s session.
The indexes finished the day mixed…
- Dow Jones +0.3%
- Nasdaq -1.3%
- S&P 500 -0.4%
- Russell 2000 +1.8%
Looking at the S&P 500 heat map, there was a clear divide, with large tech companies falling and smaller companies with more tangible assets rising…
Sector Round Up
Bulls favored the risk-off stocks on Wednesday, as 6 of the 11 sectors ended the day with gains.
At the top…
- Energy (XLE) +2.7%
- Real Estate (XLRE) +1.9%
- Utilities (XLU) +1.7%
The risk-on sectors were clustered together at the bottom…
- Consumer Discretionary (XLY) -0.7%
- Communications (XLC) -1.1%
- Technology (XLK) -1.5%
Notable Names
This week, SEC Chair Gary Gensler has staked his career and reputation on a fight against crypto middlemen.
- Lawsuits against Binance and Coinbase (COIN) have shaken the crypto business
- ^Bitcoin’s price is on the decline this morning … at writing, 1 bitcoin costs $26,400
- That’s a decline of about -1% over the past 7 days
Gamestop (GME^) reported lousy earnings and fired its CEO after the closing bell on Wednesday.
- Company sales topped $1.2 billion with a bottom line loss of $51 million
- Shares rose nearly 6% during the session ahead of the earnings report
- This morning, shares are down nearly 20% in premarket trading
Technicals:
Fear has vanished from the market. The VIX, aka the “fear gauge,” is at its lowest level since the pandemic began in 2020.
This week even long term-support levels failed to hold.
Your take-home … The market is not pricing in a recession any longer. The bulls are in charge.
Your latest readout…
- RSI levels are mostly neutral, the Russell 2000 is now overbought
- The Put-to-Call Ratio is neutral
Timing:
Just two days remaining in our boring week…
Next week is chock full of inflation reports and the looming Fed rate decision.
We’ll deliver your guide for next week tomorrow morning.
Watchlist:
*Low Float
^Open Position
*UTME support at $2
*WLDS support at $2
*GSIT support at $6.50, resistance at $7
INOD support at $11, resistance at $12
AEHR support at $40
EFTR support at $1.20
SYM support at $35
NNOX support at $20, resistance at $22
KOD support at $9
^PLAB support at $22
UPST support at $30
CGEN support at $1.20
^AI support at $30 / $35
NVTS support at $8, resistance at $9
MRSN support at $8
Secondary watchlist—float 100+ million
YEXT is on watch
ZUO on watch
CXM support at $14 / $13
OSCR support at $8
^IOT support at $22
^MVIS on watch
DHC support at $2
JOBY support at $6
^PLTR resistance at $14