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The market actually went down last week.
I won’t be in country to save it this week, so please everyone do your part.
The first of my eight rides in Italy began Sunday, a mostly downhill, get your head and legs ready 29 mile ride from the Austria/Italy border to the city/town of Brixen which is spectacular.
I am with a group of friends coordinated by my pal Mike Dean who turned 56 yesterday. I turn 56 as well this Friday. Some cocktails were and will be consumed…
This morning I have a nasty climb into the Dolomites but the reward I am told is sheer beauty.
Back to the business of Momentum…
You can watch/listen to the episode on YouTube as always here. I have embedded the show below on my blog:
Ivanhoff’s comments :
September came and volatility has picked up with it. Last week we saw quite a few breakouts reversing and good setups breaking apart. It’s about time some would say. We have become so accustomed to the slow grind higher than even a 1% down day seems like a big selloff. It’s all about perceptions. Pullbacks are a normal and even desired part of the cycle because they make every trend more sustainable and provide much better risk/reward entry points. We should not be afraid of them. We should welcome them.
The S&P 500 seems on its way to test its 50-day moving average for the 8th time this year. Guess what happened in the previous occasions. Just when most became comfortable with the short side, SPY bounced fiercely and made new all-time highs. This behavior won’t continue forever but as of right now there’s little reason to believe that dip buyers won’t show up again. QQQ is still above its 20-day moving average. The semiconductor ETF – SMH made new all-time highs on Friday, albeit it finished weak near its lows of the day. The industrial metal ETF – XME, also tried to break out but ended near the lows of its daily range. Most importantly, we continue to see a strong market reaction to earnings reports. AFRM, LULU, MDB, ICUI, RH are just some of the big breakout examples from the past two weeks. The market sentiment is still bullish and dips are likely to remain buying opportunities. With that in mind, I am holding a large cash position and will focus on quick short-term trades for the time being.
Quickly to my other favorite momentum links…
Charlie’s 7 chart Sunday
Stocktwits free weekly 25 momentum lists
Nikita’s weekly SPAC update
Have a great week.
Disclaimer: All information provided is for educational purposes only and does not constitute investment, legal or tax advice, or an offer to buy or sell any security. For full disclosures, click here.