Growth Stocks Bounce While Boeing Blows The Doors Off
Monday Market Update - January 8, 2024
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Stocks are strong today, and it looks like five or six days of selling was enough, at least for now.
Looking at the short-term 30-minute chart, we see a change in character for SPY and QQQ as they get back above the year-to-date anchored VWAP and the 5-day MA. Now, see if the strength holds, and the 5-day MA can curl back up.
Not everyone is having a good time, though. Boeing stock $BA sold off more than 8% this morning after the FAA grounded all 737 Max airplanes for safety checks after an emergency door blew out of an Alaska Airlines flight shortly after takeoff. The plane made an emergency landing, and fortunately, no injuries were reported.
The stock wasn’t as lucky. It was not exactly a crash but a rapid, unscheduled descent. Buyers stepped in for a trade at the 50-day MA, demonstrating that the charts matter, even in surprise situations.
Back to the strength:
NVDA, a focus name coming into the week, was a leader all day, breaking above its nine-month base and moving well over $500 while printing an impressive igniting bar.
SMCI is following suit, rising nearly 10% on the day while breaking through pivots.
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The action wasn’t limited to semiconductor names.
XBI followed the plan nicely by recapturing the 8-day MA and $90 level after several days of consolidation.
Renewed strength in the growth-oriented areas of the market is a good indication of risk appetite. Let’s go to the charts to see what may be next.
SPY printed an ‘igniting bar’ although the volume wasn’t especially heavy. Prices launched off the support level and recaptured the 8 and 21-day MAs in one day. Next up, recent pivot highs at $477.55 followed by the all-time high at $479.98.
QQQ jumped back over the 8 and 21-day MAs as well. 404 to $409 has a bit of congestion. We’ll see how far a “day 2” move can take it.
IWM made good progress as small caps rallied back over the 21-day MA. It’s into a pivot level, though, and the 8-day MA is still a couple of points above. A move back over $200 would help the confidence.
DIA Boeing couldn’t drag the Dow 30 lower. It’s back over the 8-day MA and near highs.
TLT bounced back over the 200-day MA.
DXY was quiet and lower as stocks took center stage.
The Closing Bell
Buyers were out in full force, pushing 10 of 11 SP Sectors into positive territory for the day (Energy XLE was the only negative).
Some calendar items could shake things up later this week. The latest inflation data will come on Thursday with the Consumer Price Index (CPI) followed by the Producer Price Index (PPI) on Friday.
Earnings season also begins this week with several big names reporting Friday:
BAC, C, JPM, UNH, and several more.
Back with more on Thursday.
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***This is NOT financial advice. This is NOT a recommendation to buy, sell, or trade any security. The content presented here is intended for educational purposes only.
Andrew Moss is an associated member of T3 Trading Group, LLC (“T3TG”), an SEC-registered broker/dealer and member of FINRA/SIPC. All trades placed by Mr. Moss are done through T3TG.
Statements in this article represent that person’s opinions only and do not necessarily reflect those of T3TG or any other person associated with T3TG.
Mr. Moss may hold an investment position (or may be contemplating holding an investment position) that is inconsistent with the information provided or the opinion being expressed. This may reflect the financial or other circumstances of the individual, or it may reflect some other consideration. Readers of this article should consider this when evaluating the information provided or the opinions being expressed.
All investments are subject to the risk of loss, which you should consider in making any investment decisions. Readers of this article should consult with their financial advisors, attorneys, accountants, or other qualified investors before making any investment decision.
January 8, 2023, 4:00 PM
Long: AMZN0119C155, IWM, NVDA, NVDA0119C520, TNA0119C37, XBI, XBI0119C90
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