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7/18/22 Retail Shows Resilience, Earnings Season Begins

News:

Friday started with a bang!

According to the U.S. Census Bureau, Retail spending rose 1% in June, topping the estimates and smashing expectations.


Image from Stockvault

Markets surged higher in unison, and the four big indexes rose 2% (+/-0.2) each.

The mid-morning release of the Consumer Sentiment survey put wind in the buyer’s sails … The preliminary reading was also above estimates.

Just keep in mind we’re coming off of record low sentiment reading … so a “better” number isn’t necessarily great.

The leading sector was Financials ahead of a slew big bank earnings reports due on this morning … More on that in the “Timing” section below.

Stock Splits:

Shares of Alphabet (GOOG/GOOGL) begin trading on a 20-to-1 split adjusted basis this morning.

Shareholders of Gamestop (GME^) at the close of trading today will receive three additional shares each on Friday.

The 4-to-1 split will be complete be the end of the week.

Crypto Update:

Bitcoin continues its upward trajectory, climbing above $22,000 overnight.

The global crypto market cap is back above $1 trillion this morning too.

Technicals:

A lower VIX favors the bulls.

And it’s finally starting to break down…


VIX Daily Candles – Chart via thinkorswim

The volatility gauge finished Friday below 25. If it can continue to fall it will set the stage for a major bull rally into the end of the year.

  • The Put-to-call ratio is still neutral
  • RSI levels are unremarkable

Timing:

Earnings season has begun! We’ve circled the ones we’re watching the closest….

Earnings calendar - weekly

The next major date on our calendar is ten days away on July 28th:

  • Q2 GDP data release in the premarket
  • The Fed will announce its latest rate hike in the afternoon

Watchlist:

*Low Float
^Open Position

*USEA is on watch
*HTGM has support at $1.60
*FNKO has support at $22
*BRPM has support at $10
CLNN has support at $4
^CBIO has resistance at $1.80
TH has support at $11
SIGA has resistance at $15
CELH has support at $70, resistance at $80
MREO has resistance at $2
VERU has resistance at $16
GOSS has support at $10
SGEN has resistance at $180
TCRT has resistance at $1.50
PAYO has resistance at $5.50

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