8/22 Recap

The Nasdaq opened up over 100 points and faded to red quickly. Some very large intraday reversals on Tesla and Nvidia which both went from up 3-4% to red. The internals in the market are very weak still as very few of the megacaps are trending over the 8 ema. Again if you step back and look at the past month, which of the megacaps is higher today than it was on August 1? The answer is not a single one has a green candle this month except Amazon, so the market has been dragged lower by the weakness at the top.

Today Retail stocks were massacred on a few awful reports from some meddling retailers in Dick’s and Macy’s. A bit overdone for the whole sector, but retail in general is an awful space. The regional banks were bad too with the KRE falling off badly as fears of another banking crisis are rising with every passing session. There were alot of financial puts bought today that you will see below in today’s table. Something could be brewing there. Look at it below breaking decisively below the 200 day today. It looks like at a minimum it wants that gap fill from mid July.

We still have 2 large catalysts this week with Nvidia reporting and Jackson hole Friday. There isn’t reason to expect much more than chop until those give us more clarity. Then you’ve got nonsense like this VFS which debuted last week, a foreign EV maker that sells a handful of cars that was worth more than Ford and GM last week and today is up 135% as I write this. There is just so much froth still in this market.

The SPY while still unable to reclaim the 8 ema is seeing a bullish divergence building at the moment. All we can do is wait for the rest of the week to get a better sense of what is coming, but for the moment we are still in an uptrend.

Trends

Week To Date