Yesterday, buyers couldn’t find a price they didn’t like. More than 80% of stocks closed the day higher.
The indexes surged, with gains ranging from 2.4% for the Dow to 3.5% for the Russell 2000.
The S&P 500 and Nasdaq gained about 3% each.
Photo by Brett Sayles from Pexels
The day’s leading sector … INDUSTRIALS! —More on this in the Technicals section below.
What drove today’s gains?
- Lower energy prices
- A weakening dollar
- A Bank of America (BAC) survey found that cash reserves were at their highest point since 2001
The Netflix Bonus
Netflix (NFLX) spiked 8% after hours. It reported not-as-bad-as-expected earnings.
- The former Wall Street darling lost ONLY 970,000 subscribers.
- Projections expected closer to 2 million
- The company projected subscriber growth as soon as this quarter.
The popular show “Stranger Things” is likely a big driver. The release of the final 2 episodes earlier this month caused the company’s server to crash.
On a final note, Bitcoin^ is above $23,000 this morning. It’s trading at its highest level in more than a month.
With industrial leading the way, it’s worth a quick glance at their chart.
The industrial sector includes:
- Automation specialist Honeywell International (HON)
- Aerospace and defense companies like Boeing (BA) & Lockheed Martin (LMT)
- And as you may have guessed, railroads like Union Pacific (UNP)
XLI Weekly Candles – Chart via thinkorswim
Industrials are typically a boring sector with low volatility.
It’s been trading at 2019 levels since mid-June. The surge higher is signaling buyers are ready to buy.
We’ll be watching this fund to see if it can get through the resistance at $90
Also on our radar…
- The put-to-call ratio ended in neutral territory
- The VIX closed below key level 25 again (that’s bullish)
- RSI levels are neutral but at their highest levels since early June
Tesla (TSLA^) reports earnings after the closing bell today. Will have eyes—Anything can happen!
We’re closely watching next week’s news cycle for the latest big catalysts…
- Wednesday afternoon, the FOMC will announce the size of the latest rate hike**
- Thursday, preliminary Q2 GDP data will be released premarket
*^FNKO has support at $22
*BRPM (now FAZE) is on watch
CLNN has support at $4, resistance at $5
^CBIO has resistance at $1.80
TH has support at $11
VERV has support at $30
SIGA has resistance at $15
CELH resistance at $80
MREO has resistance at $2
RYTH has resistance at $12
NCNA has support at $1.50
MRTN is on watch
VUZI has support at $7
VERU has support at $16
GOSS has support at $10, resistance at $11
CNK has resistance at $19
PAYO has resistance at $5.50
** In earlier reports, we erroneously stated that the FOMC meeting concludes with a rate hike announcement on Thursday, July 28. We regret the error.