October 24, 2021

Sobering comments from Intel (INTC) and a couple of members of the Big 5 pressured the market late last week, however stocks deserved a breather after their recent rally. As noted, it would be normal for the Nasdaq to pull back to the vicinity of the 20 ema and 50 ma before attempting a takeout of the September record high.

We are a week away from the historically-best three-month stretch of the year. While anything can happen, breadth and interest rate proxies like the banks, brokers, and financials continue their recent improvement.

Since these historically have tended to be leading indicators of a primary bull top, their health in combination with the positive seasonals augur for a positive market going into year-end.

Sub-surface, there are not scads and scads of stocks setting up, ready for breakout. It may seem that things should be that way. But, alas, those Big Seven names exert a large influence on the Nasdaq, and sometimes make things look better than they are.

A number of growth titles have come out of patterns recently, and it will take a little time to see their replacements put the finishing touches on their own patterns so that they are fit for consumption.

Energy stocks remain buoyant, but the preference here is for growth issues. There is one oil & gas explorer mentioned below for those looking for additional exposure to the oils beyond the oil & gas explorers that have been working for us.

Tesla (TSLA): Just 1% past its pivot point for those who did not get a chance to enter on Friday.

Advanced Micro Devices (AMD): Waiting for earnings Tuesday post-close. This is believed to be the second-most desirable semi after Nvidia (NVDA).

The following names are believed to be the most attractive in the $13+ market for our strategy of speculation.

Celsius Holdings (CELH)

Denbury (DEN)

Mongodb (MDB)

Progyny (PGNY)

In summation, the averages are entitled to some softness after their three-week advance. Positive seasonals, breadth, and interest-sensitive issues bode well for upward revaluation through year-end. Due to a number of issues moving back to new-high ground, there is a paucity of actionable names at the moment.

Kevin Marder

Trading Lessons
Introduction to the service video (38:00)
Money management and risk management video (20:27)
Bread and butter pullback video (11:10)
Bread and butter pullback: Pt II video (15:09)
Bread and butter pullback: Pt III video (31:48)
Bread and butter pullback: Pt IV video (30:16)
System R
Short-selling video (25:53)