News:
Markets opened in the red on Monday.
After a couple of hours of uncertainty, buyers stepped in and pushed higher prices. In the end, the bulls had it.
The indexes closed at their day’s highs and all in positive territory…
- Dow Jones +0.1%
- Nasdaq +0.5%
- S&P 500 +0.4%
- Russell 2000 +0.4%
The buying was primarily driven by a retreat from oversold conditions.
Sector Round Up
8 of the 11 sectors closed with gains.
At the top…
- Energy (XLE) +1.3%
- Materials (XLB) +0.8%
- Consumer Discretioary (XLY) +0.6%
The losers…
- Utilities (XLU) -0.1%
- Real Estate (XLRE) -0.2%
- Consumer Staples (XLP) -0.4%
Technicals:
This morning, the only index that remains oversold is the Russell 2000. And it is certainly in a range of support.
The rising support, oversold conditions, and expected seasonal bottom have led us to initiate our first swing position of the season.
We bought a starter position in the leveraged ETF that tracks the Russell 2000 TNA.
Your latest readout…
- The VIX is holding below 18
- RSI levels the big three retreated from oversold conditions
- The put-to-call ratio remains oversold
Timing:
October is on the horizon. The month is typically a pivotal time in the stock market.
We’ll have your complete October guide delivered to your inbox on Friday.
Watchlist:
*Low Float
^Open Position
*SHOT support at $1.40, resistance at $1.55
*ACIC support at $8
*GLBS on watch
GIII support at $24
APLT support at $2
WSM support at $145
NN support at $5 / resistance at $5.50
TNGX on watch
SCS support at $10.50
Secondary watchlist—float 100+ million
TALK support at $1.80