By: Jeff Cooper
Hit and Run Morning Stock Report: April 6, 2023
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Below is a recap of the list of the top ten Mega-Caps that are rapidly shedding point count since the new quarter began.
April looks cloudy.
Fast moves come from false moves and last weeks end of quarter Window Dressing has the Momentum Mannequins in tatters.
Names include ABNB, TWLO, AMAT, MDB, CRWD and TSLA.
Volume fell to its lowest level in a month as markets approached the three-day weekend and the jobs number that will be reported on Good Friday.
The bottom panel displays a chart of the NYSE Composite with daily volume. Also added is the SPX Equal Weighted Index for comparison.
One can observe at a glance how similar the SPX Equal Weight pattern is to the overall NYSE Composite and how different each is to the big-cap-weighted SPX Index.
As offered previously, that cap-weighted SPX moved far above the March 6 peak as the top eight weighted stocks ran up on Window Dressing.
With IWM, The Truth Teller testing the high of the low-bar March 24 Gilligan buy signal and scoring a Grail Fail below its 20 day ma yesterday, I can’t help but think IWM’s WEEKLY Minus One/Plus Two sell setup is an Indication that a big weekly Rule of 4 Sell is on deck.
That trigger is around the 167 region.
I’m focusing on April 11 as a potential outbreak in volatility.