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Sizing Up the S&P 500
- S&P 500 tests and holds December high of 4,101.
- 38.2% retracement of YTD move
- Tests and holds middle of price channel, potential signal for bull flag breakout
- S&P 500 forming second inside week
- Historical volatility, VIX continue to fall.
- 21-day EMA potentially marking uptrend
Key Economic News:
- Oil inventories rise more than expected amid record U.S. shale production.
- January CPI higher than expected after December upward revision
- Retail sales, Empire Index may suggest little recession risk.
- NAHB homebuilder sentiment has biggest gain in almost 10 years as sales expectations jump.
- Cisco Systems (CSCO): earnings, revenue beat; government business strong, similar to cybersecurity names last week
- Smaller growth stocks (including recent IPOs) jump on strong results:
- Uber Technologies (UBER)
- Palantir (PLTR)
- Airbnb (ABNB)
- Roku (ROKU)
- Twilio (TWLO)
- Roblox (RBLX)
- DexCom (DXCM): Earnings, revenue beat ahead of G7 product launch tomorrow
Leaders & Laggards
- Growth stocks continue to outperform.
- Chinese stocks struggle as economy struggles to recover
- Precious metals crumble as inflation fears subside and U.S. stabilizes.
- Safe havens are the only losers YTD: Utilities, health care, consumer staples
- Consumer discretionaries lead in 2023 thanks to Tesla (TSLA) and cruise ships
- Crypto-related stocks rebound after pullbacks
- Walt Disney (DIS) holds 21-day EMA
- AT&T (T) holds 50-day MA after “Golden Cross” on 1/4
- KLA (KLAC) holds 50-day MA, August high.
- Stryker (SYK) pulls back from record high, holds 21-day EMA.
Mover of the Week: AppLovin
AppLovin (APP) jumps 85% after dropping 92% from November 2021.
- The mobile-software maker’s earnings, revenue and guidance beat forecasts.
- Monday, 2/20: Presidents’ Day (market closed)
- Tuesday 2/21:
- Walmart (WMT) reports in premarket.
- Wednesday, 2/22: Fed minutes.
- Nvidia (NVDA), Etsy (ETSY) report in the post market
- Thursday, 2/23: Revised Q4 GDP
- Alibaba (BABA) reports in premarket
- Block (SQ) reports in postmarket
- Friday, 2/24: CPE inflation
Using the Platform
Platform tool of the week: Price channels
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