Good morning Surfers,
here we are back with the mid-week update, where little has happened in these first three days.
In this appointment, we discuss:
Waiting for inflation data
Some interesting titles
Waiting for inflation data
In these first three days of the week, little has moved in terms of direction, in fact, we have witnessed extreme volatility without any directionality that has led the major indexes to close near their closings on Friday, August 4. In short, a dead end…
For any reference to graphs, levels, or analysis refer to the latest published articles.
It certainly seems that Wall Street is waiting for news to enliven the situation in the short term this August bordering on soporific.
The news that will hold sway this week will be:
Wednesday's July CPI report (in a few hours)
July PPI report on Thursday.
Both will be released at 8:30 a.m. U.S. time and could generate significant market volatility.
I think this will be the best chance for the bears to get the S&P 500 index down to 4400, maybe even to 430. But if inflation reports are "quiet” I don't think we will reach those levels, at least in the short period.
Interesting titles
It is difficult to be aggressive ahead of important data such as those coming out these days, and with a few small and mid-cap companies awaiting quarterly releases.
However, in the absence of any significant movement in the markets, I thought I would suggest some stocks in the healthcare sector.
INMD
The stock is in the vicinity of significant support February 2023 highs and July gap support.
Ideally, we would like to see a longer consolidation to allow a full discharge of the PPO indicator.
MDXG
It is struggling with a negative divergence on the PPO, and a descent to the indicator's equilibrium line would be the most conservative solution. Critical support levels are shown in the figure.
GKOS
After the June gap was covered, the price action went into sideways, trying to figure out who between buyers and sellers will win it. The area I am watching is $70.
COIN
Only stock not related to the healthcare universe, an operation we did two days ago in the Surfer Portfolio.
What did I see there?
Simply hammer on $85 support, tight stop-loss trade. Further support is below in the $70/$65 area.
OSUR
Long white candle, after quarterlies, gave no opportunity for entry.
Useless to chase prices right now, the wise strategy is to wait for a return to the highlighted supports or a consolidation of a few days at these levels.