Upticks – October 2022

in Technical Strategy

Introduction History shows Sir Isaac Newton not only to have excelled as a Mathematician and physicist, but also to be a skilled astronomer, alchemist, theologian, and author. Many who have studied Newton’s history know that he published a book called “Opticks” back in 1704, expounding his corpuscular theory of light. He considered light to be made up of extremely subtle …

Reversal looks important, and could extend 10-15%

October 3, 2022 in Technical Strategy

Q4 got underway with a welcome 2%+ gain for the Bulls on very strong Advance/Decline data which should help prices extend in the days ahead.   Nine sectors rose more than 2% while over four etched out 3%+ gains which looks constructive during a time when Equities are due to carve out an initial trading low.  While many rightly require additional …

Here’s why AAPL likely bottoms next week

in Technical Strategy

US Stock indices remain churning near the June lows, and haven’t shown sufficient signs of bottoming, nor rallying to have a meaningful view of direction on a 1-2 day basis.   One can certainly make the call for a possible Friday bounce on better-than-expected economic data with the all-important PCE Deflator coming out.   However, it remains my conviction that next week …

Growth holding up better than expected on recent weakness

September 28, 2022 in Technical Strategy

Markets have begun a bottoming process in my view, and while it’s tough to rule out a test and minor break of this week’s lows, the downside should prove limited into next week and provide the start of a liftoff for Equities in Q4.  While Technology was quite weak back in late August, it’s been acting far better in recent …

September Technical Outlook

in Technical Strategy

Conclusions Stock indices are likely to bottom out in October, initially during the first week potentially.   Rallies might encounter some resistance into Earnings and expiration by mid-October but any late month selloff is buyable for a push up into December of this year.   Treasury Yields likely to peak out at/near when Stocks start to bottom, and a rolling over in …

Defensives give way again, as Technology holds strong

September 27, 2022 in Technical Strategy

SPX, NASDAQ and DJIA look to be in the final stages of their decline off mid-September peaks.  Prices got briefly below June lows but held as of Tuesday’s end of day close.  The bullish case for fighting trends into next week is all centered on the following: Oversold conditions. Anemic breadth levels. Possibility of upcoming DeMark confluence on multiple timeframes …

Treasuries, US Dollar and Stocks have potential to turn next week

in Technical Strategy

The path of least resistance remains to the downside, and while early Monday reversal attempts looked initially encouraging, the late day pullback towards lows of the session should offer market Bears a bit more profits before a real trend reversal.  Factors such as bearish sentiment, the start of volume and breadth dislocation, and oversold conditions in various momentum indicators are …

Risk-reward for Shorts looks subpar with indices nearing June lows

in Technical Strategy

Note: I will be traveling today and therefore will not be publishing a video. Thank you for your understanding. Markets are now approaching price targets for this decline, and there’s a good likelihood of a trading low to this pullback likely early next week.  For the second day in a row, markets are showing hugely negative Advance/decline readings and the …