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Momentum Monday - The First Trading Day of 2023... Let The Fraud And Cheating Begin
Howard Lindzon
January 03, 2023
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Happy first trading day of 2023.
The year 2022 was gross. The S&P closed up on the first day - it's only all-time high - and finished the year down 18 percent, the worst since 2008. Bonds had their worst year in history.
The good news was we hit an all-time high in conspiracy theories and collective asshattishness.
Despite it all, Ivanhoff and I are back as always walking through the markets and sharing our quick, deep thoughts.
Three charts I am watching closely as 2023 begins are the 30 year bonds, the large cap tech stocks and the Nasdaq 100...2023 will be the year of being patient!
Here are Ivanhoff’s thoughts and he lists stocks he is watching for bounces:
Most stocks and indexes had a red December giving back the majority of their November gains. Biotech XBI was an exception but it also didn’t really rally in October and November like the rest of the market. The 52-week list is still almost empty but biotech stocks are dominating it. If we see a market bounce attempt, biotechs are likely to be among the leaders. Some biotechs on my Momentum 40 list include AXSM, HALO, HRMY, MRNA, AMLX, SRPT, ACLX, etc.
In the first three weeks of a new year, we typically see many of the biggest laggards from the previous year outperform, especially small caps. We might see something similar in January unless the indexes really break down. Stocks like $TSLA, $GNRC, $MTCH, $ALGN, and $SIVB which were the worst performers on the SP500 in 2022 might benefit in a range-bound January. Some of them have already started to bounce.
The next earnings season starts in a couple of weeks with financials reporting first. Usually, the period between earnings seasons is bullish for most stocks but such observations play a little role during bear markets. The indexes are still in one. If QQQ loses 262, it can test 255. If SPY loses 378, it can test 370.
Elsewhere...
The Rotation Report continues to be an AWESOME read.
The Stocktwits momentum lists are here.
Have a great week.
Disclaimer: All information provided is for educational purposes only and does not constitute investment, legal or tax advice, or an offer to buy or sell any security. For full disclosures, click here.
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