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8/24/22 It’s Been Six Months…

News:

The market lacked conviction on Tuesday. 50% of stock advanced while 45% declined.

The indexes ended within 0.5% of where they started.

Sector Roundup

4 of 11 sectors ended the day green.

  • Energy (XLE) continues to be the most volatile sector gaining +3.6%
  • Materials (XLB) came in second, adding 1.0%

At the bottom…

  • Healthcare (XLV) -1.4%
  • Real Estate (XLRE) -1.5%

While the broader markets were light on action, there was plenty of volatility in individual stocks…

Notable Names

Image from Zoom

Shares of Zoom (ZM) fell more than 16% after its earnings call.

  • The company missed revenue expectations
  • Lowered its forecast
  • Shares are down more than 75% over the past year
  • Cathie Wood bought the dip.

AMC Entertainment’s (AMC^) special dividend shares APE^ surged 17% on their second day of trading.

  • AMC stock fell 8.6% at the same time
  • Unlike other companies with multiple tickers trading publicly, AMC & APE don’t appear to have any correlations.

Shares of Starbox Group (STBX) surged 285% on their first day of trading.

  • The “provider of cash rebates, digital advertising” listed 5 million shares at $4 each
  • The stock closed at $15.40 
  • Trading volume surpassed 20 million shares

Technicals:

The S&P 500 failed to hold critical support, as we pointed out yesterday.

But the riskier stocks in the Nasdaq…

QQQ Daily Candles – Chart via thinkorswim

And the Russell 2000…

…Are refusing to break down.

As you can see on the charts above and below.

IWM Daily Candles – Chart via thinkorswim

The market is not pointing in a clear direction at the moment.

The other signals we’re tracking…

The market is waiting for Friday…

Timing:

This week the world is looking to Wyoming…

On Friday at 10 a.m. Fed Chair Powell will speak at the annual Jackson Hole Economic Symposium on Friday. 

Today is also a notable anniversary…

It’s been exactly six months since Russia invaded Ukraine.

  • The invasion is an escalation of the war that began in 2014.
  • Neither side appears to have a clear advantage.
  • A personal reflection from our Editor-and-Chief can be found here.

Watchlist:

*Low Float
^Open Position

*FPAY resistance at $3
AXSM is on watch
COGT support at $16
VERV resistance at $38
RYTM support at $23
CSIQ support at $42, resistance at $45
INFI support at $1.20, resistance at $1.60
CPRX support at $14.50
PRVA support at $40
^GEO support at $7.50
^GERN resistance at $2.50

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