The General Market
After a gap up, all the major indexes finished weak.
The QQQ formed an inside day andwas down .58% and the NASDAQ had more net new lows. We remain below the 50 SMA.
The SPY undercut yesterday’s lows and was down .76%. The NYSE also had more net new lows.
The IWM was down .61% and is right at its 50 SMA.
The VIX remains above all its moving averages. It did not make new short-term highs.
The T2106 is still short-term “oversold.”
Trends (3/4 Down)
Short-term: Down (still below the 5 SMA)
Intermediate-term: Down (below a declining 21 EMA)
Mid-term: Mixed (below 50 SMA but the 50 SMA is increasing)
Long-term: Down (below a declining 200 SMA)
Below are some stocks I’m watching to the upside that have been holding up well. Overall Biotech and Solar remain the strongest themes.
AXSM holding the 5 SMA.
TH continuing to build sideways.
CSIQ among other solar names holding up well.
ARRY continues to hold the 21 EMA.
ENPH holding the range. A break below Monday’s low would not be a good look. FSLR also strong!
SHLS – want this to tighten.
TMDX holding up well.
RYTM – tight action, could break either way.
KRTX acting well.
Another negative day as the indexes were rejected at their 50 SMAs. 4 days straight of weakness. Solar and Biotech continue to move sideways as the market pulls back.
The longer-term trends remain downward. Keep watching the leading stocks and the indexes. Be ready for anything!
How to Build and Manage a Portfolio (2022 Q3)
In this issue of Stock Guide, we’ll be focusing on how to build and manage a portfolio. We’ll go over how many positions you should own at once, how to size them properly and when to add to your best performers.
For our Q&A, we spoke with Kenny Polcari, Founder/CEO of Kace Capital Advisors and frequent financial media commentator. Kenny shared his thoughts about the current market, how investors should be managing their portfolios in different market cycles and much more. And finally, in this issue’s Good Trade / Bad Trade, MarketSmith Coach Sunny Phan gave us the rundown on two of his recent trades.
What is a Green Line Breakout?