The Weekly Selection: 10/02/22
Volume 7
INTRODUCTION:
Hello Investors,
I’d like to preface this weeks newsletter with a brief word of encouragement:
Through these tough trading and economic times its valuable to take stock of the position you’re in. This is an opportunity to learn and trade through a type of market that only comes around once every decade or so. The action will be tough, and the fake-outs tougher, but take a deep breath and note what you encounter in these strange times as it may prove to be quite valuable in the future.
Last week saw SPY 0.00%↑ close down below June lows with a total gain of (2.93%). Going into the month its looking like a big flush from a technical standpoint but some emergency fed meetings may offer relief (first one 10/03/22). If not, I’m looking to add more to my long term positions around $324 or $339. This area historically has contained the pre covid high as well as a toughly contested post covid breakout. Seeing as we cant determine buy positions based on the fed, with their guidance from the last few quarters being off by quite a bit, its in our best interest to at least take advantage of some long term support zones for buys.
The chart for spy can be seen below:
levels can also be seen around the current price. If we see upside expect $370 to be an area of contention. For those who are unfamiliar, I traditionally use SPY 0.00%↑ as a guage of the broad market as it has consistently been the top performing index.
PAST PERFORMANCE:
Last week was another tough one for individual stocks, and I maintain my theme of staying away from the buy Monday, sell Friday thesis from old weekly selections. We are simply not in an trend in which I am confident doing anything more than swinging lightly and day trading heavily.
The performance of last weeks stocks can be seen below:
As you can see, the individual stocks outperformed the broad market pretty substantially. Open to high value was strong as well. I traded almost all of these, besides STEM 0.00%↑ NIO 0.00%↑ and DDOG 0.00%↑.
QUOTE OF THE WEEK:
“It is better to be roughly right than precisely wrong”
-John Maynard Keynes
LESSON:
Expect an additional newsletter this week on Dollar Cost Averaging, a useful way of adding to long positions in tough market conditions. Subscribe to follow along.
CHARTS:
Hopefully we can ‘flea’ to a ‘lucky’ part of the market this week. Lets get into it!
POSH 0.00%↑: First up. took this one long last week around $14 and I think its now entered a breakout stage with solid volume.
RVNC 0.00%↑: Strong outside weekly + hold of news gap.
APLS 0.00%↑: Strong daily approaching the supply zone. If we can get through it, I will initiate long
PLMR 0.00%↑: that last daily candle is pretty brutal, curious to see if it can break up out of it this long term trend
$MNTK: If $MNTK can invalidate this head and shoulders, I would expect a ferocious move out.
AEHR 0.00%↑ long term weekly flag + this mini daily flag. On watch.
VRTX 0.00%↑: crazy weekly chart here
NBIX 0.00%↑ strong weekly formation, reclaimed 50sma
GUSH 0.00%↑ double bottom pattern for leveraged oil, looking to see a gap fill above. I own shares.
REGN 0.00%↑ daily. Its helper BIIB 0.00%↑ has held well, will REGN hold as well
BTU 0.00%↑ Strong weekly on above average volume.
CCRN 0.00%↑, chipping away at this supply zone.
APRN 0.00%↑: mediocre daily, gonna have this one on my "at your own risk list"
That’s all for this week guys!
I appreciate those who take the time to support me and read all the way through the newsletter.
Remember to subscribe for more below!
-Tanner