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7/6/23 Fed Minutes and the Lack of Professionalism

News:

On Wednesday, markets opened modesty lower and failed to move into the green all day.

The indexes ended with some losses…

  • Dow Jones -0.4%
  • Nasdaq -0.2% 
  • S&P 500 -0.2%
  • Russell 2000 -1.3% 

The biggest newsmaker of the day was the release of the minutes from the most recent FOMC meeting.

Photo from Getty Images

In a nutshell, they said more rate hikes could be on the way. But a decision has yet to be made.

There was nothing new in the minutes—and the indexes ended the day near their pre-release levels.

Sector Round Up

Despite the losses in the border market, there were a few green spots.

4 of the 11 sectors and Wednesday’s session higher.

At the top…

  • Utilities (XLU) +1.1%
  • Communications (XLC) +0.8%
  • Real Estate (XLRE) +0.5%

At the bottom…

  • Energy (XLE) -0.6%
  • Technology (XLK) -0.6%
  • Materials (XLB) -2.5%

We couldn’t find a clear catalyst for the outsized losses in the materials sector.

Technicals: 

The put-to-call ratio is one of the best indicators of the market’s stability…

$CPC Daily – Chart by thinkorswim

Monday’s nosedive made us pause and ponder the tough question … “What did we miss?”

Wednesday’s post-holiday snap back to neutral territory showed a lack of professional involvement in the markets during Monday’s shortened session.

Here’s your latest readout…

Timing:

Today at 8:30, we’ll get the latest unemployment filings.

Tomorrow is the final jobs report before the July FOMC meeting

Watchlist:

*Low Float
^Open Position

*RMTI support at $5, resistance at $6
AAOI support at $6
GASS support at $4.20
TALS support at $3
^CIFR support at $3
^OSTK support at $30
IREN support at $5
ONCY support at $3
MRNS support at $10, resistance at $11
WULF support at $2

Secondary watchlist—float 100+ million

MARA support at $14
CLSK resistance at $5
RGTI resistance at $1.60
ENVX on watch
ACHR support at $4.50
TMC on watch
GOL support at $5
^IONQ support at $12
ABCM support at $24
OPK support at $2, resistance at $2.20
OPEN support at $4

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