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8/3/22 Demand is Soaring, This is Where

News:

Markets ended a choppy Tuesday somewhat lower.

All four indexes fell and not a single sector ended the day in the green …. But that’s where the bear’s strength ends.

Declining stocks outnumbered advancing stocks but not by much. Despite the weakness in the indexes 39% of stocks managed to close the day higher.

The Demand Side

As earning season rolls on we are seeing strong demand in certain areas of the economy.

  • Uber (UBER) gained 19% after doubling its revenue year over year. 
    • On the earnings call the CEO noted, “The marketplace looks strong.”
  • Marriott (MAR) fell 1% after describing travel demand as resilient.
    • Its CFO said “We are not seeing any signs of any demand pullback.”
  • Starbucks (SBUX) added 1.5% in after-hours trading. Despite the higher costs for workers and supplies it says, “consumer demand has overwhelmed many baristas.”

From The Fed

We heard from three of the twelve Fed Presidents yesterday…

  • San Francisco Fed President Daly
  • Cleveland Fed President Mester
  • Chicago Fed President Evans

Each hinted that the Fed is likely to remain hawkish in the near term. And a quick pivot toward easing interest rates is unlikely.

Crypto Update

The crypto market is showing signs of strength this week.

  • Bitcoin is holding up above $23,000 nicely.
  • The global market cap for all crypto is holding strong above $1 trillion.

Based on our analysis of the timing of previous bull and bear cycles in the crypto space we believe the bottom is in.

Here are some mining stocks to consider if you’re looking for exposure to the space…

  • Riot Blockchain (RIOT)
  • Marathon Digital (MARA)
  • Core Scientific (CORZ^)

Technicals:

The VIX held below the key level of 25 yesterday.


VIX Daily Candles – Chart via thinkorswim

While the major indexes do face some overhead resistance the bullish trend remains intact.

This morning futures are on the rise and our other indicators are neutral.

Timing:

Demand for labor has also remained extremely strong despite the economic headwinds.

This week we’ll get a deeper look at the employment situation in the US.

Keep a close eye on: 

  • The latest unemployment filings on Thursday morning. 
  • July’s jobs report will drop on Friday pre-market.

Watchlist:

*Low Float
^Open Position

*REV has support at $8
*QRTEB is on watch
*GOVX has support at $3
*FAZE has support at $13
*AEMD is on watch
TH has resistance at $14
SWIR has support at $27
PGY has support at $25
SIGA has support at $18
CELH has resistance at $110
DUO is on watch
ALDX has support at $5.50
RYTM has support at $14
GETY has support at $30
VUZI has support at $8
FSLR has resistance at $100
INVZ has resistance at $5
GEO has resistance at $7.50
EDU has support at $25
ARRY has support at $15

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