October 26, 2023

Good morning. Let's get right to it, last two weeks have been an extremely tough / violent market and traders / investors continue to try and navigate through it. As we did earlier in the year, it's time to bring the trend lines and price points to help everyone.

So far, really not much to overthink or do here, all indexes are gravitating towards the 200d, seems we want to test each one. Headlines continue to dominate and drive hourly moves. In fact, have you ever seen so many headlines on AAPL alone prior to ER? But, a close for SPX above the 200 could provide some relief and a nice rally. Thus far, price action has not been unhinged and very mechanical. Just bring up a chart and you see them walking this down, again, a gravitation towards testing the 200 across all indexes. We almost would love to see an unhinged break below the 200, see folks selling hard, and then we have outstanding companies going on sale and you see that violent snap back that has been notorious following such price activity. Right now, you can almost see the formation of a rounding bottom rather than the V everyone is constantly looking for.

Bulls have the defend 4180 and make their stand. Watching this closely. Should we lose it and hold it, than we can see 4050 on the S&P quickly. Once the formation / trend is set, we are ready to jump all over it whether it be on the short or long side. We have ground to make up after the last two weeks. Great September but October, especially the last two weeks, has been difficult with the violent swings. So many catalysts are still left over the next week; Powell, Inflation numbers, and monster earning reports.  The really promising news is this; every single cycle after periods like the one we are currently in provides the greatest opportunities to profit and it gets explosive.  Too many times folks rush in and want to call tops / bottoms rather than trying to be patient and waiting for the confirmation.  Once the confirmation is received, the window opens and we have the runway to create massive opportunity for traders to profit.  That period can make a year for some!  Stay patient here, allow this to materialize and then we attack and profit from it.  That window is coming.  

Portfolio is mixed with a short in AX and long positions in MARA and TSLL. 

Be on alert and ready. Staying patient and trying to be super selective here until the trend is set although the queue is active. Let's have a great session.