September 7, 2022

After seven days down, the market finally caught a bid today, though the averages remain below both 9 ema and 20 ema. The Nasdaq has its work cut out for it, beginning with an attempt on scaling the 50 ma.

Today's NYSE breadth was slightly better than the S&P 500, though nothing like what was seen in the aftermath of the June 16 low.

Among the Big 7 stocks, only Tesla (TSLA) and Amazon.com (AMZN) act reasonably well.

The top-ranked solars made some noises, coming out of three- and four-week patterns following the President's recent unveiling of the Inflation Reduction Act which contains funds for renewable energy.

A few names such as Array Technologies (ARRY) and Udemy (UDMY) act well with good patterns, but are sitting below stacks of resistance.

The difference between this market and a market set up for successful speculation in growth stocks is stark. For those of you who are less experienced, you will see what I mean when we get to that point.

System 7

Last night there were five candidates for today's session, four shorts and one long. As mentioned, I did not believe it was wise to short anything after seven down days. Thus, there was nothing on the docket.

The four shorts did not buck the rising tide of the day, as I thought they might. The long, Five Below (FIVE), took 1.7R in profit on an MFE basis, as shown below.

There are no names on the 7 docket for Thursday.

In summation, the averages are in down trends and there is little in the way of leadership. We 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 (New)