The Market
Imagine a road trip to an unknown destination that keeps dragging on and on. “Are we there yet?” comes incessantly from the back seat. The suspense wafts out the cracked windows like cigar smoke. We don’t even know where ‘there’ is. We just want to get out of the car.
Will we arrive at the beach for days of fun and relaxation? Or did we leave hurriedly after getting a dreaded 3 AM phone call?
A soft landing and return to economic and stock market growth? Or recession and a nasty bear market?
Maybe we’re just driving in circles.
We don’t even care at this point. If someone would at least tell us where we’re going, we could relax just a bit and prepare for whatever is next.
There are other options.
Take a different route. Or skip the trip altogether.
Look away from the choppy, range-bound indexes and spend more time looking for single stocks that are doing the right things.
It can be useful to have a feel for the general market condition. Being focused on bullish potential in a bull market is perfectly logical. Doing the opposite in a bear market is equally so.
But spending too much time trying to answer that question can be a road to nowhere. While the debate continues around bull and bear, soft or hard landing, recession or no recession, there are opportunities flying by.
We need to pay attention to the stock market. But we also need to mind the market of stocks. Consider the major indexes, but don’t forget to spend time cultivating a list of individual names as well. You won’t find them in the headlines as much as the banks, other victims of destruction, or the crisis du jour, but there are some stocks having surprisingly good earnings moves.
They’re worth looking for. Even if we don’t know where the market is heading.
The Charts
SPY came very close to its 50-day MA and two AVWAPs prior to today’s bounce. $418-$420 is still the level to watch for more upside.
QQQ is trying to do its part by checking a box. It’s over $321 and looks better. But we’ve seen this earlier in the week too. It got above. Now it needs to say.
IWM is over its 8-day MA. That’s a step. Next week we need to see it keep rising into the 50-day and swing high AVWAP.
DIA is back over the 8 and 21-day MAs.
ACWX still working towards the $50 mark.
The Closing Bell
Tomorrow I will act on my own suggestion and share more individual stocks in the Weekend Weekly Charts thread.
Come say hello. And chime in if there’s a name you’d like to see.
See you there.
The Disclosures
***This is NOT financial advice. NOT a recommendation to buy, sell, or trade any security. The content presented here is intended for educational purposes only.
Andrew Moss is an associated member of T3 Trading Group, LLC (“T3TG”) a SEC registered broker/dealer and member of FINRA/SIPC. All trades placed by Mr. Moss are done through T3TG.
Statements in this article represent the opinions of that person only and do not necessarily reflect the opinions of T3TG or any other person associated with T3TG.
It is possible that Mr. Moss may hold an investment position (or may be contemplating holding an investment position) that is inconsistent with the information provided or the opinion being expressed. This may reflect the financial or other circumstances of the individual or it may reflect some other consideration. Readers of this article should take this into account when evaluating the information provided or the opinions being expressed.
All investments are subject to the risk of loss, which you should consider in making any investment decisions. Readers of this article should consult with their financial advisors, attorneys, accountants, or other qualified investors prior to making any investment decision.
POSITION DISCLOSURE
May 5, 2023, 4:00 PM
Long: AAPL, JPM
Short:
Options symbols are denoted as follows:
Ticker, Date, Call/Put, Strike Price
Example: VXX1218C30 = VXX 12/18 Call with a $30 strike