Here's The FindLeadingStocks.com Morning Report 10/20/23
Good Morning Team,
- Heavy Distribution & Rally Over: From my point of view, the nascent rally attempt is over evidenced by the back-to-back heavy distribution (a.k.a. heavy selling) we have seen over the last few weeks. Others might say the rally is still intact and that's fine. From a practical standpoint, most stocks are not going up and that is what matters in my world. New Follow-Through Day (FTD): Going forward, I want to see a new FTD show up, and, more importantly, a new batch of leaders breakout of sound bases, and race higher.
- Stocks On The Move:
UP: NFLX, KNX, AMWL, BOWL, RANI,
Down: ENPH, TSLA, SEDG, ARQT, FBYD, ADXN, ISRG, NOVA, HPE, SSL - 10-Year Yield & The USD: The yield on the 10-year yield hit another new multi-year high on Thursday which helped send stocks lower. Technically, it is super extended and due to pullback. That said, extended markets can get a lot more extended before they pull back. The same is true for the greenback. The USD is on track to be up 14 weeks in a row which is a lot by any normal measure. Once these two markets pullback, that could pave the way for higher stock prices.
- Watch Support & The 50 DMA Line: I will stay mostly defensive until the major indices get back above their respective 50 DMA lines. For those of you that want to short, I can't argue going short if the recent lows break. If the QQQ breaks below 351, look out below. The easiest way to short is to go long any of the inverse ETFs and trade them the same way you would any stock. Have a normal entry on a technical inflection point and use protective sell stops. HDGE is run by my friend Brad L. and is a great way to hedge your portfolio. Unlike inverse products, he is shorting individual stocks and HDGE does not use leverage.
- Thursday Was The 36 Year Anniversary For The 1987 Stock Market crash - My friend Ryan Detrick at Carson tweeted this and it helps put things in perspective.
Source: https://x.com/RyanDetrick/status/1714973076268462144?s=20
Let's see where we close today and, as always, I'll have a full report for you this weekend.
Have a great day!
Adam Sarhan
FindLeadingStocks.com
