November 6, 2022

Last week's takeaway was the reiteration by Jay Powell that the overnight federal funds rate will be "higher, longer" for as long as it takes to corral inflation.

Specifically, the Fed chair said that it would be "very premature" to be thinking about pausing the rate-hike cycle.

Powell's comment doused the belief among some market participants that a pivot to an easy money policy, or even a pause in its higher rate campaign, might be in the offing.

For the time being, given the downward trend in the averages, it does not make sense to be taking any longs. A few look interesting, however.

Alpha Metallurgical Resources (AMR) closes in on the top of its consolidation. with earnings due out Monday pre-open.

Diamondback Energy (FANG) creeps up to the top of its 36% deep pattern ahead of earnings expected Monday.

Ormat Technologies (ORA) stands right at the top of its six-week pattern following its earnings release.

Transmedics Group (TMDX) advanced 24% on big volume Friday as it sits just below the top of its seven-week consolidation.

Van Eck Oil Services ETF is believed to be one of the most interesting energy securities, though it will need to put in some time at the top of a 38% deep pattern.

System 7

Testing has been discontinued in favor of System P, which offers more potential in the areas of trade frequency, the ability to trade options as well as stock, and overall profitability.

In summation, the trend is down and few leaders appear technically attractive. Cash remains the best strategy.

Kevin Marder

Trading Lessons
Introduction to the service (38:00)
Money management and risk management (20:27)
Bread and butter pullback (11:10)
Bread and butter pullback: Pt II (15:09)
Bread and butter pullback: Pt III (31:48)
Bread and butter pullback: Pt IV (30:16)
Bread and butter pullback: Pt V (1:41)
System R
Short-selling (25:53)
Wyckoff spring reversal (2:30) 
5-minute breakup test (8:01)
Screens (21:03)