The market spent Wednesday trading in the red.
All eyes were focused on the 2 p.m. release of the FOMC minutes from July. Markets showed little reaction to the release…
- Nearly 80% of stocks ended the day lower.
- The Nasdaq and Russell 2000 fell more than 1% each.
- The Dow and S&P 500 lost 0.5% and 0.7% respectively.
Of the 11 sectors we track, only 1, Energy (XLE; +0.8%), ended the day in positive territory.
Communications (XLC), Materials (XLB), and Consumer Discretionary (XLY) lost more than 1% each.
A look at the S&P 500 map reveals several bright spots across the market, though…
From the Fed
The market took the minutes in stride. Markets rallied to their highs of the day immediately after the release … But settled lower.
Here are your key takeaways:
- Inflation is “uncomfortably high”
- More rate hikes are likely in the future
- Those hikes could cause an “increase in unemployment”
- The FOMC may slow the pace of rate hikes in the future
- The next FOMC meeting is scheduled for September 20-21.
Bed Bath & Beyond (BBBY^) rose another 12% yesterday.
But after hours, a filing revealed that WallStreetBets god Ryan Cohen intends to sell his entire stake within 90 days.
- In the Wallstreetbets group, selling is widely discouraged as members tout their “diamond hands,” referencing their willingness to catch falling knives (stocks).
- Those who sell are called “paper hands”
Cohen is a notable character in the meme stock craze. Best known for…
- Founding of Chewy (CHWY)
- Becoming chairman of the board at Gamestop (GME^)
- Being an activist investor in BBBY as of in March
Shares of BBBY are down more than 12% in pre-market trading this morning.
The market needs to cool off.
This chart shows the S&P 500 with its RSI at the bottom…
We’ve been monitoring the overbought conditions for days now and expected the rally to slow.
Yesterday’s dip relieved some of the overbought pressure … Futures are lower again this morning.
We’ll be watching for support near $420 to hold over the next few days.
Options expiration is Friday, 8/19—Watch for added volatility heading in the weekend.
The next day circled on our calendar is Thursday, 8/25:
- Tesla (TSLA^) stock split is set to take effect
- Final Q2 GDP numbers will be released
*AEY support at $2
*FPAY support at $2
MAXN support at $20
BCAB support at $10
COGT on watch
SIGA support at $22
COCO support at $14
RYTM support at $23
TCDA support at $12
RAD support at $10
VUZI resistance at $10, support at $9
VERU on watch
INFI support at $1.30
CPRX on watch
Secondary watchlist … +100m float
GEO^ support at $8
TCRT resistance at $2
BFLY resistance at $8.75
ABCL support at $12
BNGO support at $3