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7/20/22 Turn Around Tuesday w/Stranger Things Bonus

News:

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.

Sector Watch


Photo by Brett Sayles from Pexels

The day’s leading sector … INDUSTRIALS! —More on this in the Technicals section below.

Positive News

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.

Crypto Update

On a final note, Bitcoin^ is above $23,000 this morning. It’s trading at its highest level in more than a month.

Technicals:

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

Timing:

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

Watchlist:

*Low Float
^Open Position

*^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.

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