The Market 📈
One would think heading into today that the market is about to get clobbered after the chaos unfolding in Washington, but wait I have something for you to lean on!
We run quite a few statistics on the market everyday but the one I found the most reliable is that each stock has a unique price action footprint that we call the average true move.
During the bear market of 2022 the #SPY moved in 30 point increments when it declined and pretty much every time it was spot on.
So coming into Wednesday with bearish headlines galore one would think “Look Out Below.” And technically you would be correct, but good trading relies on good statistics so we can ignore our research.
I’m not saying we’re going to have a massive bullish rally today but unless something fundamentally changes, the likelihood of going lower has decreased.
So this is one of those moments where you look for relative strength, look for confirmation using minimum viable criteria and go get some bullish cash flow if it’s on the table.
You shouldn’t be shocked if it happens. So be prepared.
The one thing we’re looking for from a bigger picture perspective is whether or not Healthcare and consumer staples stocks start to catch a bullish bid.
These sectors represent the things we need to buy regardless of inflation. Stuff like Band-Aids, healthcare plans and basic goods. Something to keep an eye on for the remainder of 2023 to find bullish stacked to order flow that we can lean into and finish the year strong.
Stocks For Breakfast 🥞
Welcome to a new edition of Stocks For Breakfast…
In the ever-shifting landscape of financial markets, October continues to be a month of surprises, uncertainty, and unprecedented opportunities. The bearish tone of the financial world seems to be in a state of flux, and we’re here to help you navigate these tremors.
Our journey begins in the heart of the American political arena, where whispers of Kevin McCarthy and Matt Gaetz’s bid for House Speaker are echoing through the corridors of power.
This political shakeup is reverberating far beyond Washington, adding to the undercurrents of instability in the financial markets.
From Wall Street to Main Street, investors are bracing themselves as the U.S. 30-year bond yield tops 5%, a development that is shaking the confidence of even the most seasoned investors.
The specter of Washington dysfunction looms large, rattling investors and sparking a sell-off that has many questioning what lies ahead.
Yet, amidst this turmoil, some are finding their footing.
The AI sector, often seen as a bellwether for tech innovation, stands as a beacon of resilience. One AI stock, in particular, is demonstrating an impressive ability to weather the storm, holding up in a brutal market.
In the semiconductor realm, a question is poised: Could Micron Technology become the next Nvidia? As we delve into this, we’ll explore the potential of this underdog, and what it could mean for tech investors.
Meanwhile, Apple, the titan of technology, finds itself at a crossroad. A recent downgrade at KeyBanc, triggered by concerns over valuation and slow U.S. sales, raises questions about the tech giant’s future trajectory