9/29/22 Bank of England to the Rescue


Early yesterday morning, the Bank of England sent shockwaves of buying through the markets with a surprise announcement.

Bank of England logo
Image from The Bank of England

The declaration is simple. The Bank will…

  • Buy bonds “on whatever scale is necessary” to stabilize the bond markets.
  • It also “postponed” selling operations.

In simple terms, the UK’s central bank has flipped from a seller to a buyer. And they, like The Fed, have unlimited funds.

The market cheered the news.

Indexes soared and closed near their highs…

  • Dow Jones +1.9%
  • Nasdaq +2.1%
  • S&P 500 +2.0%
  • Russell 2000 +3.2%

Looks great, right?

Let’s put things in perspective.

  • Single-day gains like this are not typical bull markets.
  • At writing, futures are down about 1%

Sector Round-Up

There wasn’t a red spot in the house as all 11 sectors gained over 1%. 

At the top…

  • Energy (XLE) +4.4%
  • Communications (XLC) +3.4%

At the bottom…

  • Utilities (XLU) +1.1%
  • Technology (XLK) +1.1%

Hap Happenings

photos of Porsche & Biogen building signs
Images from Reuters & AP

Porsche (PAH3.DE) debuted today on the German market.

  • Shares were priced near the top of the range, giving the company an initial market cap near $80 billion. 
  • At writing, shares are down about 8%.

Shares of Biogen (BIIB) soared 40% after positive results from phase 3 trials of its up-and-coming Alzheimer’s drug.

  • The stock also received a slew of analyst upgrades
  • The highest projection is $360, a 30% upside to yesterday’s closing price.
  • After the surge, the stock price is now near flat over the past 12 months.


The VIX rejected higher levels…

VIX chart with resistance at 35 marked
VIX Daily Candles – Chart via thinkorswim

The fear gauge started the day near the critical level of 35 but declined throughout the day. This is generally a positive development for the bulls.

It’s likely the VIX has now topped out.

Our other signals

As we stated yesterday, we’ve begun establishing our seasonal position in both the S&P 500 and the Nasdaq.


You’ll receive the October outlook tomorrow morning. Stay tuned!


*Low Float
^Open Position

*BEAT support at $3
*PEPG resistance at $12
HROW resistance at $10
LGHL support at $2
SAVA resistance at $50
DCPH support at $17
RVNC support at $24
AMPS on watch
FREY support at $14
HLIT support at $12
CANO support at $8, resistance at $9

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