8/23/23 Theft, Default, & Falling Guidance


On Tuesday, markets opened green, but buyers failed to push beyond the initial open.

As the trading session wore on, stocks declined at a controlled pace.

Charts from Finviz

The indexes ended the day mixed, with a bearish tilt…

  • Dow Jones -0.5%
  • Nasdaq +0.1% 
  • S&P 500 -0.3%
  • Russell 2000 -0.3%

Sector Round Up

Only 3 of the 11 sectors finished the day green.

The winners…

  • Real Estate (XLRE) +0.3%
  • Utilities (XLU) +0.3%
  • Consumer Discretionary (XLY) +0.2%

At the bottom…

  • Consumer Staples (XLP) -0.6%
  • Energy (XLE) -0.8%
  • Financials (XLF) -0.9%

Notable Names

Retailers Macy’s (M) and Dick’s (DKS) reported lousy earnings and their share prices tumbled -14% and -24%, respectively. The retailers face challenges, including…

  • Theft, aka “shrink”
  • Increasing late credit card payments
  • Inflation weighing on consumer’s budget

At the end of Tuesday’s session, the retailers lost $550 million and $3 billion in market cap, respectively.

Image from RT News & Fabrinet

Electronics component producer Fabrinet (FN) soared 32% to close at its highest level ever yesterday.

  • The company’s earnings beat estimates
  • Analysts raised price targets
  • Barron’s suggested its surge was riding the AI theme
  • Tuesday’s gains added more than $1 billion in market cap


Just because the bears managed a small victory on Tuesday doesn’t mean they’ve taken control.

During Tuesday’s session, the S&P 500 logged a higher high and a higher low as it seeks to establish a bullish trend…

SPY Daily Candles – Chart by thinkorswim

Overall conditions in the market don’t warrant and change in outlook. We remain bullish but expect seasonal weakness to continue through September.

Your latest readout…


Historically speaking, August is not the best time to buy stocks.

We booked profits in the late July rally. We are looking for buying opportunities in late September and October.

For now, we are in wait-and-see mode.


*Low Float
^Open Position

*RETO support at $6
*HKIT on watch
*GCT support at $12
*TSAT support at $18
*GAMB support at $13
*GROV support at $3
*ACIS (formerly UIHC) support at $7
GRPN support at $10, resistance at $12
EYPT support at $14
AAOI support at $14, resistance at $16
PFIE support at $2
EZGO support at $2.25, resistance at $2.75
ESTE on watch
support at $7
VFS support at $35

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