A very volatile week for stocks last week as the market bounced from deeply oversold levels early in the week and then plunged lower until Friday when many stocks snapped back to close up $2 to as much as $375 higher as was the case with Amazon (AMZN) which reported a large beat on earnings and raised prices on its Prime service.

Growth stocks struggled while cyclical energy stocks lifted. Oil surged over $90 a barrel which is the highest price we have seen in over 7 years. Though oil was this high in 2014, it did not lead to a spike in inflation so it appears the supply chain issues from covid are creating more inflation than the actual price of oil.

Let’s begin the charts with a look at two leading indexes.

Now let’s look at some stocks knowing I’m holding plenty of cash other than a few select trades while we wait for actual bases and patterns to develop for much better TBA’s.

I look forward to seeing you back here Monday night for an update on our stocks.

Daniel J. Zanger