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October 21, 2022 Weekend Market Review

www.trading-adventures.com

October 21, 2022 Weekend Market Review

The first up Friday in 6 weeks

Andrew Moss, CMT
Oct 21, 2022
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October 21, 2022 Weekend Market Review

www.trading-adventures.com

Welcome to the weekend.  We’ve got a lot to review today.

If you're a new reader, first of all - Thank you!  Take a minute to subscribe now.

And follow me on Twitter as well. I share a lot of charts and observations there throughout the week.

The markets

This week the market is ending on a high note, which is an infrequent occurrence lately. In fact, today is the first Friday in 6 weeks that didn't get a sharp selloff in stocks. With so much uncertainty and headline risk, no one has wanted to be long over the weekend.

That changed this week.

SPY 0.00

QQQ 0.00

IWM 0.00

Stock prices were helped higher at least partially by a VIX that broke the range and moved below 30. Many have been eyeing this as a prerequisite for higher stock prices.

$VIX

The US Dollar also chilled out a bit, which is possibly the biggest driver of stock prices right now.

UUP 0.00

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Looking deeper; some flagship names are making moves as well.

NFLX 0.00 is back into the gap and heading higher. Today it closed above the 200 SMA and all-time high anchored VWAP.

Energy has been very strong and is leading the market higher.

XLE 0.00

I also noticed while going through the charts this week;

Tons of stocks are running right into potential resistance.  If the majority of these can get up and over, we could be set for a bigger move. I’ll share a look at some of them tomorrow on Twitter as I’m running out of space here.

Reminder:

Although the turns have been sharp and numerous in 2022, the market doesn't have to go from bull straight to bear and then straight back to bull. A rangebound, back-and-forth environment is also possible. Maybe even likely.


Bull and bear case

The stock bull case can be stated very simply:

Get above and stay above the key moving averages. DIA, SPY, QQQ, and IWM are all back above the 8 and 21-day EMAs. As long as that holds up we’re in a tradeable active sequence.

Watch the recent pivot highs for potential resistance and a test of the upward move.

The bear case is equally simple:

Lose the short-term 8 and 21-day EMAs and the trade is dead. Or at least on hold.


What I'm reading

This week I was able to finish the book I mentioned in last week’s market review.

"The Blueprint to Trading Psychology" by Alan Edward

I’ve read many, many books on trading psychology and this one earns a spot near the top of the “best of” list. Here are a couple of nuggets:

“The very foundation of confidence is simply having a plan.....

It should be as easy as;

If A happens then I will do B.

If B doesn’t happen then I will do C.”

"If you don’t have daily, weekly, monthly, and yearly goals for your trading, it will be very difficult for you to visualize your success."

On dealing with drawdowns: Ask yourself these 2 questions -

Am I following the plan?

Am I managing risk?

If you can answer yes to both then you have nothing to worry about. Keep going.


From Twitter

A word on Bubbles-

These NFT values fell faster than a person jumping off a bridge.

Twitter avatar for @WSBChairman
Chairman @WSBChairman
In March 2021, the first tweet ever sold as an NFT for $2.9 million. The most recent bid is $97.
Image
7:22 PM ∙ Oct 14, 2022
18,710Likes2,097Retweets

Speaking of……..A bunch of crazy people gathered to jump off the “longest steel span in the western hemisphere and the third highest in the United States.”

Bridge Day in WV

Twitter avatar for @bridgeday
Bridge Day, WV @bridgeday
It's a gorgeous day for a BASE jump! #BridgeDay2022
1:40 PM ∙ Oct 15, 2022
74Likes31Retweets
Twitter avatar for @MikeGwinn2
Mike Gwinn @MikeGwinn2
Not familiar with WV Bridge Day? Each year on the third Saturday of October people can BASE Jump or rappel from the bridge. It is also open for the public to walk across during the day. The spectacle usually draws hundreds of vendors and crowds of 80,000-100,000.
Image
2:53 PM ∙ Oct 15, 2022

Today I learned:

Twitter avatar for @Iowamom7
Iowamom @Iowamom7
FUN FACT:
Image
4:16 PM ∙ Oct 17, 2022
1,254Likes320Retweets
Twitter avatar for @McClellanOsc
Tom McClellan @McClellanOsc
And thus, if you give the enemy "the whole 9 yards", you (the gunner) are making a complete commitment, foregoing any possible opportunities to engage other targets later in the mission. You are giving up everything you have on this one task.
Twitter avatar for @Iowamom7
Iowamom @Iowamom7
FUN FACT: https://t.co/QPEZPLE7Ni
1:00 AM ∙ Oct 18, 2022
105Likes24Retweets

James Bond is undefeated

click for the full image:
Twitter avatar for @ATRightMovies
All The Right Movies @ATRightMovies
Take 5 minutes to read maybe the greatest celbrity story ever. Told by Marc Haynes.
Image
2:00 PM ∙ Oct 14, 2022
28,482Likes3,684Retweets

This works for everything. Including this article.

Twitter avatar for @TradingComposur
Trading Composure @TradingComposur
How to make the most of my tweets: - Don't think of them as absolutely true or absolutely false - Practice nuanced thinking - Keep an open mind - Absorb what is useful to you - Discard what isn't - Like, RT, or comment with your own thoughts—helps keep the conversation going
6:34 PM ∙ Oct 19, 2022
152Likes10Retweets

Anything else?

We had an open house this week in the T3 Live ProDesk VTF. If you didn't catch it, don't worry. There will likely be another one sometime soon. If you want to see what it's all about before then click here.

Feel free to email me with any questions.

Email me


Thanks always for reading, subscribing, and sharing with your friends and family. 

Join me tomorrow morning for a look at the weekly charts.

I hope you have a fantastic weekend.

Cheers.


***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 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

Long: CVX, QQQ

Short:

Options symbols are denoted as follows:

Ticker, Date, Call/Put, Strike Price

Example: VXX1218C30 = VXX 12/18 Call with a $30 strike

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October 21, 2022 Weekend Market Review

www.trading-adventures.com
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