October 2, 2022

Stocks fell for the 10th time in 14 sessions Friday, as the Nasdaq got dangerously close to its bear market low set in June.

The S&P, which had already undercut its June low, also moved lower Friday, but did so on fewer 52-week lows than five days' prior. We speak of negative divergences a lot, but this is a positive divergence. It shows that the performance of the broader market, i.e. the average stock, is being masked by the weakness in the big-cap averages.

The weekly update of the beta version of System Seven can be downloaded here.

We continue to wait 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