News:
The selling continued on Monday as all four indexes posted declines.
- Dow Jones -1.1%
- Nasdaq -0.6%
- S&P 500 -1.0%
- Russell 2000 -1.4%
The Dow Jones has officially entered a bear market.
- It closed the day down 20.4% from its all-time high set on January 4th.
The S&P 500 notched a new low for the year.
- It’s down 23.8% from its January 3rd high.
Sector Round-Up
1 of the 11 sectors found enough buyers to close in positive territory…
- Consumer Staples (XLP) +0.1%
At the bottom…
- Utilities (XLU) -2.4%
- Energy (XLE) -2.5%
- Real Estate (XLRE) -2.7%
Crude oil is trading near $77 per barrel.
Interestingly, this is the same level it was trading at when the Dow and S&P 500 posted all-time highs in early January.
The Casino is Open
Macau, an autonomous region near Hong Kong known as the “Las Vegas of Asia,” is opening back up.
According to the Wall Street Journal, “the city’s government” is set to allow “visitors from mainland China” for the first time since the pandemic started.
Shares of casino stocks soared on the news.
- Melco Resorts & Entertainment (MLCO) +25%
- Las Vegas Sands (LVS) +12%
- Wynn Resorts (WYNN) +12%
Bitcoin Lives
Bitcoin,^ the largest cryptocurrency by market cap, has climbed about 6% in the past 24 hours to regain the critical support level of $20,000.
After failing to break down below $18,000 four times in the past three months, it’s possible the bottom is in, and crypto markets are ready to move higher.
Read our full analysis here.
Technicals:
The Put-to-Call Ratio snapped back to neutral yesterday after ending 8 of the last 10 trading days oversold.
It’s the first relief from the selling pressures we’re seeing.
- The VIX hit resistance near 32 and may have peaked
- RSI levels remain oversold for all four major indexes.
In our view, the market is quickly running out of sellers.
Timing:
Futures are higher this morning, rising as much as 1% overnight.
Traditionally, September is the weakest month of the year. And a bad inflation reading pushed it over the edge this year.
We’re excited about October … Which is a bear killer.
Your complete October outlook will be delivered on Friday.
Watchlist:
*Low Float
^Open Position
*BEAT on watch
SAVA support at $40
DCPH support at $17
RVNC support at $24
FREY support at $14
CANO support at $8