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8/30/22 Paychecks and Beyond!

News:

Yesterday markets slowed the bleeding and even turned positive for a brief moment.

Arrows pointing up and down

But in the end, the bears claimed victory … 68% of all stocks lost ground.

Of the major indexes… 

  • The Dow fell the least with a 0.6% decline. 
  • The Nasdaq was the worst performing index dropping 1.0%.

Sector Round-Up

2 of 11 sectors found enough buyers to close positive.

  • Energy (XLE) rose 1.5%
  • Utilities (XLU) climbing 0.3%
Photo of a nuclear power plant at sunrise
Photo by Markus Distelrath from Pexels

One notable story on this front came from the Washington Post. A new report said it could be a new day for nuclear energy. 

  • According to the report, both the EU and Japan are looking to use nuclear energy to combat the energy shortage.
  • Nuclear energy has been on the decline since the 2011 Fukushima disaster.

Here are the top uranium stocks to watch…

  • Uranium Energy (UEC)
  • NexGen Energy (NXE)
  • Energy Fuels (UUUU)

And the biggest loser was…

The Technology Sector (XLK). 

  • It fell by 1.3%
  • It was the only sector drop more than 1%

The Economy Is Getting … Better?

A survey from Lendingclub said fewer America’s are living paycheck-to-paycheck.

According to the report…

  • 59% of Americans live paycheck to paycheck
  • Down from 61% in June 
  • But still higher than 54% from a year ago

Notable Names

Bed Bath & Beyond (BBBY^) climbed 25% during Monday’s trading session.

  • The so-called meme stock is on the rise again in the premarket. At writing, its up another 12%, above $15
  • The stock is now about 50% off its high of $30 earlier this month
  • Yesterday’s move was driven by raw speculation.

Shares of GEO Group (GEO^) are now up 25% since famed short seller Michael Burry disclosed his stake in the company.

Bitcoin^ reclaimed the critical support level of $20K

Your take-home…

  • The market is still exhibiting some “risk on” behavior 
  • Individual investors as a whole are buying this dip, not selling it.

Technicals:

The put-to-call ratio closed at its highest level since June.

This chart shows you exactly what happened in the weeks that followed…

SPY Chart showing rally
SPY Daily Candles – Chart via thinkorswim

Compare the two candlesticks in June to the previous two trading days.

This morning…

  • Futures are higher
  • RSI levels are neutral
  • The VIX is on the decline … nearing the critical level of 25

Timing:

Nothing to add today…

Your September outlook will be delivered tomorrow morning.

Happy trading.

Watchlist:

*Low Float
^Open Position

*NERV is on watch
*RVPH is on watch
COGT support at $16
VERV support at $37
AREC support at $3
FLNC support at $19
DXLG support at $5.50
DNOW support at $12
^GEO support at $8.50
TCRT resistance at $3
^GERN resistance at $2.50
TAL on watch
GSAT support at $1.80

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