October 16, 2022

A market hungry for evidence that inflation has peaked sold down sharply Friday, reversing the prior day's gains and setting a new closing low for the bear market.

The action was not the biggest surprise because Thursday's broader market lagged the sizable gains in the averages. A nascent advance with lagging Big Board breadth is not an advance to bet money on.

Energy continues to be the No. 1 sector in terms of relative strength. Healthcare is the runner-up.

There are no longs for Monday.

For more-aggressive players, two short ideas have been added to the Focus List for Monday. These actually are System Seven ideas that presented themselves in my testing of that system.

Among the names, the following are believed to be the most attractive for more-aggressive players in the $13+ market.

Akamai Technologies (AKAM) is shortable below Friday's low of 79.84, with suggested stop pivot of Friday's high of 82.01 and 1R target of 77.67. Earnings ETA Nov 8 4:00 p.m. ET (confirmed).

Verizon Communications (VZ) is shortable below Friday's low of 36.34, with suggested stop pivot of Friday's high of 36.91 and 1R target of 35.77. Earnings ETA Fri Oct 21 7:30 a.m. ET (confirmed). The narrow signal bar and the near-term earnings report lend themselves to a 1R scalp.

In summation, most subscribers should remain in cash.

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)
The Income Model