8/7/23 Don’t Come Back From Lunch


On Friday, the bulls opened the day strong. 

The latest jobs report showed the labor market remains tight. 187,000 jobs added, and the unemployment rate held steady at 3.5%.

Buyers initially came out in force.

Just after lunchtime, the markets peaked, and the bulls never showed back up.

Image from iStock

Markets faded into the close.

The indexes posted another day of losses…

  • Dow Jones -0.4%
  • Nasdaq -0.4% 
  • S&P 500 -0.5%
  • Russell 2000 -0.2%

Sector Round Up

The bears, however, failed to dominate. 2 of the 11 sectors posted gains.

The winners…

  • Consumer Discretionary (XLY) +1.5% – Led by blowout earnings from Amazon (AMZN)
  • Energy (XLE) +0.1%

At the bottom…

  • Consumer Staples (XLP) -1.0%
  • Utilities (XLU) -1.1%
  • Technology (XLK) -1.4%


We are watching for real signs of fear in the market, and so far, it’s just not there.

VIX Daily Candles – Chart by thinkorswim

While the VIX has crested the critical level of 16, it still failed to crack any additional levels.

As long as the VIX remains relatively low, this drawdown is most likely the result of seasonal weakness and not any major collapse.

Your latest readout…


Earnings continue to pour in this week. 

Here are the top names we’ll be watching…

  • Palantir (PLTR^) reports after the close today
  • Rivian (RIVN) Tuesday after-hours
  • Upstart (UPST) Tuesday after-hours
  • Roblox (RBLX^) Wednesday premarket
  • GoodRx (GDRX) Wednesday premarket
  • Walt Disney (DIS) Wednesday after-hours
  • Alibaba (BABA) Thursday premarket
  • IONQ (IONQ^) Thursday after-hours


*Low Float
^Open Position

*CLEU support at $2
EYPT support at $12
AAOI resistance at $11
MNMD support at $4.20
AGS support at $7.50
EH support at $20
APLT resistance at $2
NRDY support at $5
GDRX support at $8, resistance at $9.25
CORT support at $30

Secondary watchlist—float 100+ million

CAVA support at $52
^RGTI support at $2.25
AMRX support at $3.50
KTOS support at $15
RKT support at $11
CGI resistance at $3.25
BGC support at $5
^PLTR support at $18

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