Saturday, October 10, 2020
Broader Market Review
The major averages had a pretty strong week, crossing over the 50% line (white line) of the September decline. This usually means we are likely to test the previous high. We have plenty of time to do this before the election so it could be an opportunity to lighten up, if you haven’t already done so, before the election.
While the underlying catalyst for price direction is the historical and unique pattern embedded in every instrument, certainly outside events have varying degrees of influence like the Corona virus and now the upcoming election. The variables associated with this year’s election are “off the charts” so I have planned accordingly.
I have reduced risk to a point I am comfortable with and raised cash to be able to take advantage of opportunities as they present. I will be looking to broader market lower support levels for incremental risk exposure in individual stocks that are aligned with the broader market reversal zones and positioned within their own unique expansion pattern reversal.
I have identified and published most of the individual stocks that I consider the best of the best and most likely to return the most in the least amount of time. These are primarily large cap, well known companies..no crap. As usual, I will email alerts when I buy or sell.
As we enter another earnings season with financials reporting next week and technology following in two weeks I would expect some frontrunning in strong companies which might be another factor in driving the averages up to the previous highs right before the election. We are entering a period of “anything can happen” so prepare accordingly.
Nasdaq
Dow
S&P 500
Here are a few more I’m adding to my interest list..
Corcept Therapeutics (CORT)
CarParts.com Inc (PRTS)
SmileDirectClub Inc (SDC)
I will continue to send out email alerts when I buy or sell. Please do your own due diligence and understand your own risk tolerance. I am not in the business of offering individual investment advice. I am sharing what I do, how I do it, why I do it and trying to be transparent in all of it.
I am happy to answer any questions or provide current chart requests.
Don