The stock market suffered big losses last week as SVB Financial (SIVB) crashed and ultimately collapsed. SIVB stock, along with crypto bank Silvergate Financial (SI), triggered intense losses for bank stocks.
West Coast financials such as First Republic Bank (FRC) and Western Alliance Bancorp (WAL) were especially hard-hit, but Signature Bank (SBNY) and Charles Schwab (SCHW) were big losers too. JPMorgan Chase (JPM) found support on Friday.
The major indexes sold off hard, breaking multiple areas of support during the week as many leading stocks also came under pressure. Treasury yields plunged, with the pace of Fed rate hikes very much in flux.
Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures.
Amid a weak, volatile, uncertain market, investors should not be making new position trades and should be largely or entirely in cash. But keep an eye on stocks holding up near buy points. Palo Alto Networks (PANW), Facebook parent Meta Platforms (META), Ulta Beauty (ULTA), Monolithic Power Systems (MPWR) and United Airlines (UAL) are five stocks showing strength, near buy points. PANW stock has formed a handle on a long consolidation, while META stock has a new flat base. ULTA stock is finding support at key levels. Monolithic Power is working on a long cup-with-handle base while UAL stock has retreated from a buy zone.
Meanwhile, Apple (AAPL) has a new flat base as well. Tesla (TSLA) sold off hard this past week, but did find support at its 10-week line on Friday. But TSLA stock is far from being actionable.
But keep an eye on financials, such as FRC stock, WAL, SBNY and SCHW, as well as the XLF financial ETF and KRE regional bank ETF. But also pay attention to giants such as JPMorgan. JPM stock fell sharply last week, but bounced Friday.
Insulet (PODD) will replace SIVB stock in the S&P 500 before Wednesday’s open. PODD stock jumped Friday night.
Some 87.5% of Silicon Valley Bank’s $126 billion in deposits as of Dec. 31 exceeded FDIC insurance limits. Late Friday, Roku (ROKU) disclosed that $487 million, or 26% of its cash,…