8/9/23 The Exercise Pill


Markets declined on Tuesday, giving up about half of Monday’s gains.

The indexes all fell…

  • Dow Jones -0.5%
  • Nasdaq -0.8% 
  • S&P 500 -0.4%
  • Russell 2000 -0.6%

Sector Round Up

Despite the weakness, 3 of 11 sectors found enough buyers to close in positive territory.

The winners…

  • Healthcare (XLV) +0.8%
  • Energy (XLE) +0.5%
  • Utilities (XLU) +0.5%

At the bottom…

  • Consumer Discretionary (XLY) -0.8%
  • Financials (XLF) -0.9%
  • Materials (XLB) -1.1%

Weight Loss in a Pill?

Novo Nordisk (NVO) announced findings from a weight loss drug trial on Tuesday…

Obesity drug Wegovy reduces the risk of heart attack and stroke… 

  • The findings pave the way for greater insurance coverage
From Getty Images

Novo isn’t alone in this weight loss space…

Eli Lilly (LLY) announced blowout earnings on Tuesday.

  • The company saw 28% revenue growth
  • The primary driver was Mounjaro, an off-label obesity treatment

Both companies saw explosive growth in their stock prices…

  • NVO +17%, +$62 billion in market cap
  • LLY +15%, +$64 billion 


Fear remains largely absent from the market…

VIX Daily Candles – Chart by thinkorswim

The VIX, which usually has an inverse relationship with the broader market, fell with the stock prices during Tuesday’s session.

At writing, the VIX is below 16, which tells us investors are not expecting volatility. And calm waters favor the bulls.

Your latest readout…


Seasonal weakness is the culprit behind yesterday’s selling.

The first nine trading days of August are historically weak.


*Low Float
^Open Position

*DSP support at $5
*CLEU support at $2
EYPT support at $12
AAOI support at $11
AGS support at $7.50
EH support at $20
EZGO support at $2.25
NRDY support at $5
GDRX support at $8, resistance at $9.25
TDS on watch

Secondary watchlist—float 100+ million

HLLY support at $6.50
on watch
KTOS support at $16
RKT support at $11
CGI resistance at $3.25
BGC support at $5
FOLD support at $13.50
MNKD resistance at $5.50

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