News:
The bears tried to emerge during Monday’s trading session. The day’s trend was lower until … The final 10 minutes of trading.
Just before the closing bell, a surge of buyers appeared out of nowhere and pushed the indexes higher.
All the major indexes closed in the green again…
- Dow Jones +0.3%
- Nasdaq +0.2%
- S&P 500 ++0.2%
- Russell 2000 +1.1%
Sector Round Up
8 of 11 sectors ended Monday’s session higher.
At the top…
- Energy (XLE) +1.9%
- Real Estate (XLRE) +0.8%
- Consumer Discretionary (XLY) +0.6%
The losers…
- Communications (XLC) -0.0%
- Consumer Staples (XLP) -0.5%
- Healthcare (XLV) -0.8%
Making Memes
Trucking giant Yellow (YELL) surged 150% during Monday’s trading.
The price spike came after the Wall Street Journal reported it was shutting down operations and laying off thousands of employees.
- Yellow was 99 years old before the closure
- According to the report, the company failed to deliver “service for customers or profits for investors”
- The surge in price is reminiscence of the squeeze put on Hertz, AMC, & Gamestop in 2020 & 2021
- Retail investors are jonesing for the next massive run
Nostalgia is the driving force behind Tupperware’s (TUP) 650% price spike over the past two weeks.
- The stock price jumped nearly 40% during yesterday’s session alone
- The tiny market cap makes it a prime target for retail trading surges and short squeeze
Technicals:
Yesterday’s buying sent the S&P 500 right back to overbought territory…
Without any serious cool-down time, it’s unlikely that the market sustain any long-term rally.
But with so many people expecting a drawdown, it’s prime season for short squeezes.
Our advice … Trade with caution.
Your latest readout…
- The VIX is still at historically low levels
- RSI levels are overbought in 2 of 4 major indexes
- The put-to-call ratio is neutral
Timing:
It’s the first trading day of August.
Historically 25% of all market gains happen on the first of the month. However, the first trading day of August is the only one with a negative average.
Watchlist:
*Low Float
^Open Position
*ULBI on watch
CLEU support at $1.80
EYPT support at $12
MNMD support at $4.20
TUP support at $4
EH support at $20
^OSTK support at $35
UPST support at $60
NRDY support ta $4.50
AIXI on watch
WW support at $10, resistance at $12
GDRX on watch
QSI support at $3.50
MVST support at $2.50
Secondary watchlist—float 100+ million
CAVA support at $48
RGTI support at $2
MKFG resistance at $2
^IONQ support at $18
QS support at $12
XPEV on watch
^PLTR support at $18