News:
On Thursday, markets retreated from overbought conditions as buyers generally yielded to sellers.
But not everything went down. Only 3 of the 4 major indexes closed red…
- Dow Jones +0.5%
- Nasdaq -2.1%
- S&P 500 -0.7%
- Russell 2000 -0.9%
The Dow Jones logged its 9th consecutive win … that’s its longest streak since 2017.
Under the surface, it appeared that sellers had the upper hand.
- 64% of listed stock closed the day lower
- 33% posted gains
Sector Round Up
But if you threw a rock, you were bound to hit a green sector. As buyers fled risk-on stocks, they bought up others.
7 of the 11 sectors ended Thursday in positive territory.
At the top…
- Utilities (XLU) +1.8%
- Healthcare (XLV) +1.7%
- Energy (XLE) +1.2%
The losers were…
- Communications (XLC) -2.0%
- Technology (XLK) -2.0%
- Consumer Discretionary (XLY) -3.4%
It’s rare to see gains and losses great than 1% on the same day.
Notable Names
The theme of winners and losers continued with individual stocks…
Shares of Sirius XM (SIRI) exploded 42% higher during Thursday’s session.
- There was no catalyst to speak of
- Barron’s credits a short squeeze
- The late-day move added nearly $9 billion in market cap to the digital radio service
Shares of Tech giants Tesla (TSLA^) and Netflix (NFLX^) didn’t fare as well…
- Both reported earning after hour on Wednesday
- Both opened lower and faded while the market was open
- Shares fell 10% and 8%, respectively
Technicals:
The selling relieved some overbought conditions without waking the bears from hibernation.
The Nasdaq’s 2% slide failed to break through even local support levels
Our outlook remains neutral to bullish. The most likely near-term movement is sideways.
Here’s your latest readout…
- The VIX is super low—bullish
- RSI levels The Dow is the only index that remains overbought
- The put-to-call ratio is neutral
Timing:
Today is the first option expiration day of Q3 2023.
We are expecting a red day but are not taking a position. The risk to reward doesn’t warrant a trade in our assessment.
Watchlist:
*Low Float
^Open Position
*BBIG support at $2.50
*GP on watch
ICAD support at $3
EYPT support at $11
MNMD support at $4.20
^CIFR support at $4.50
^OSTK support at $30, resistance at $32.75
UPST on watch
QBTS support at $2.50
ADVM support at $2
QSI support at $3
Secondary watchlist—float 100+ million
SEEL support at $1.40
EVLV support at $6
CAVA support at $46
AMRX support at $3.25
VRM support at $2.50
RXRX support at $14
MVST support at $2.50
RKLB on watch
SIRI on watch