The Weekly Selection: 10/08/2023

Volume 059

Oct 08, 2023

Introduction

Hello investors,

Welcome back to another iteration of The Weekly Selection. In this write-up, I go through my thoughts on the state of the market, some helpful tips and quotes, as well as some stock or investment ideas I am watching going into the next week.

First, Id like to go through the broad market, as I believe any type of trader or investor should start their analysis at the large timeframe charts, such as the daily or weekly.

SPY 0.00%↑ up first. Last week, the primary index bounced off a rather interesting spot, which has been used as a support and resistance over the last couple of years. If the bull flag I have hinted at in the last few articles plays out, I think this is a healthy area for a bounce.

While the dollar isn’t as “chart-able” as others, I still like to take a look at it. As a general guideline, the direction of the dollar mostly opposes the market. A robust dollar leads to higher prices for U.S. goods in international markets, diminishing their price competitiveness and potentially reducing their appeal. all in, this decreases performance of companies, and associated metrics such as revenues, production, and innovation. Additionally, A strong dollar means strong bonds, which some investors turn to when the rates become more appealing than the volatility of the stock market.

IWM 0.00%↑ looking pretty poor again. SPY has maintained a nice gain this year, despite a recent drawdown while IWM has given up all of its gains

XLE 0.00%↑ was a primary theme of mine through the summer. After a limp breakout and a brachiosaurus pattern on the weekly, I am no longer positioned here, and will wait for another opportunity down the road.

Tip of the week

One of the biggest things you’ll hear on twitter, YouTube, or your favorite Furus discord is to block out “the noise”. While I generally agree with this, and preach this myself, I think there are limitations. I am not, you are not, and the general population of traders are not the best to ever do it. Listening to those who have had long term success is wise when uncertain, as it may help you make a decision that you were on the fence on. Again, I know this goes back on some things ive said in the past, however, I would be lying if I said at least check in on my favorite investors ideas occasionally before positioning.

These are 2 of my favorites on twitter. They have been consistent in providing strong market commentary, and I love to check in on their thoughts occasionally.