7/21/23 Big Tech is a Big Let Down


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…

Images from Dealer Frontier & CarScoops

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


The selling relieved some overbought conditions without waking the bears from hibernation.

QQQ Daily Candles – Chart by thinkorswim

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…


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.


*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

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