10/30 Recap

We opened up a tad and took off with the /NQ approaching a near 200 point gain at one point in the session. The SPY just remains in this vicious downtrend below the 200 day where every pop is sold and for now we’ve reversed nicely off the highs of the day.

The IWM, small caps, remains even worse and every attempt it makes at crossing over the 8 ema is sold. This is working on its 8th red candle in 9 days. There is no bull market until small caps start leading the way, that is just reality, and right now they’re leading the way lower everyday.

Oil is down 3.5% today and the fears over a full scale war in the Middle East we hear about daily in the media just aren’t showing in oil markets which would be the first place you would see people worried about a disruption in oil markets.

I think moreso than ever at this moment, the PEAD candidates this quarter are the ones you want to focus on, look at how NFLX and AMZN are up far more than the NQ today. The breadth of this market is really narrowing, not many names reported truly great quarters and they’re flocking to those as you can see their performance vs MSFT,AAPL,GOOG today. So just watch for names who had good reactions to their quarters, note those and focus on those for the next 90 days, it will make your life much easier.

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