6/9/22 Housing Slows, Energy Rises, & META’s Here

News:

The markets dipped yesterday but stayed within the established ranges we called out yesterday and the day before.

A data release from the Mortgage Bankers Association (MBA) showed that mortgage activity fell to a 22-year low.


Photo by David McBee from Pexels

The Real Estate sector was the day’s worst performer followed by Materials. Each sector declined more than 2%.

The Fed’s higher interest rates are cooling demand…

On a related note, 10-year bonds closed above 3% ahead of next week’s FOMC meeting.

The only sector to finish the day in the green was Energy as crude oil climbed to $122 per barrel.

Could big changes come to Wall Street?

The SEC is proposing a sweeping set of new rules that take specific aim at the controversial process of Payment for Order Flow. (See below for additional links)

Firms, including Robinhood (HOOD), have come out against the changes.

I’ll leave you with this quote from the Wall Street Journal

“Whining billionaires … Who are you going to believe? … Firms whose leaders became billionaires” off of “retail investors … or a regulator with nothing to gain?”

Technicals:

The big three indexes are stuck in sideways action.

While the Russell 2000 small-cap index is in an obvious uptrend.

All four indexes are below critical resistance. I’m watching the IWM, a fund that tracks the Russell, for a break above $190.


IWM Daily Candles – Chart via thinkorswim

The VIX stayed below 25, maintaining the bull’s slight edge.

Timing:

Meta Platforms, formerly Facebook (FB), begins trading under the new ticker META today.

The latest unemployment filings numbers are due out at 8:30 this morning.

New inflation data is due out tomorrow with the CPI report.

Watchlist:

*Low Float
^Open Position

*AERC is on watch
*RDBX key level is $10
*NINE has resistance at $4
*LPI is on watch
*AMR has resistance at $180
HNRG has support at $5.50, resistance at $6
CBIO has resistance at $1.50
CNCE has support at $5
^HDSN has support at $10
GLOP has support at $6
SD has support at $25
CTT has resistance at $12
HCC has resistance at $40
PARR has support at $18
VERU has resistance at $16
VTNR has support at $16, resistance at $18
ESTE has support at $20
CTIC has support at $6
RFP has support at $16, resistance at $17
BORR has support at $6
TTI has support at $5.50
HRB has support at $35
UNM is on watch
AR has support at $45.50

Additional Links:

In a series of podcasts, we explore Reddit’s r/WallStreetBets before meme stock mania.

Then How WallStreetBets Squeezed the Hedge Funds.

And finally a review of the Congressional hearing that followed. Enjoy!

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