Market Chaos: JOLTS Report Triggers Sell-Off and Rising Rates

The stock market took a heavy blow today as the release of the JOLTS report sent shockwaves through Wall Street. Rising rates, economic uncertainty, and sell-offs across sectors left traders scrambling to adapt.

What Happened?

• The JOLTS report, released 30 minutes into the trading session, exceeded expectations and sparked fears of prolonged Fed rate hikes.
• This news triggered a steep sell-off, with the TLT dropping sharply and rates climbing higher.
• The market turned into a trend day, with every bounce getting sold off, creating challenges for traders.

Key Highlights of the Sell-Off:

1. Large-Cap Stocks Struggled:
   • Nvidia saw its biggest down day in months, dropping over 14 points.
   • TSM, which recently broke out, had a rough day, retracing gains.
2. Quantum Stocks Tanked:
   • A statement during CES predicted no quantum computing breakthroughs for 15–30 years, causing stocks like QUBT and SOUND to plummet.
3. Speculative Stocks Suffered:
   • Small caps and speculative names, which had been grinding higher, faced sharp declines.

What’s Next?

The market is at a critical juncture, testing key levels on indices like the QQQ and SPY:

• The 50-day moving average is holding, but repeated tests could signal more downside ahead.
• Rates continue to climb, creating headwinds for equities, particularly tech-heavy names.

1. Potential Longs:
   • PLTR: Testing the 50-day moving average; could bounce if the market stabilizes.
   • Meta (META): Tightening up for a potential breakout after testing key support levels.
   • VST & GEV: Utilities showing resilience amidst broader market weakness.
2. Potential Shorts:
   • UPST: Bear flag under the 50-day moving average, with room to fall further.
   • Adobe (ADBE): Breaking multi-year support levels with significant downside potential.
   • Oracle (ORCL): Clear bear flag forming, signaling potential continuation of the downtrend.

• Be prepared for both longs and shorts: The market is in a choppy phase, making it crucial to remain flexible.
• Use tight stops: Protect your capital in this volatile environment.
• Watch key levels on major indices: Breakouts or breakdowns will determine the next move.

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