10/3/22 Tax Selling & The Fed’s Secret Meeting


The market took another hit on Friday as the final day of tax selling came to end. Many firms’ fiscal years end in Q3.

The big three indexes closed at new lows for the year.

  • Dow Jones -1.7%
  • Nasdaq -1.5%
  • S&P 500 -1.5%
  • Russell 2000 -0.6%

Fed Speak in Secret

Photo of a door chained shut.
Photo by Eneida Nieves from Pexels

This morning the Fed is holding a “closed meeting” to discuss the interest rate.

According to the rules of this meeting, a public announcement of the results will be released at “the earliest practicable time.”

Purposely vague…

The Fed announced the meeting on Thursday. The latest inflation reading, the Core PCE, dropped on Friday and came in hotter than expectations, but only marginally so.

Sector Round-Up

Of the 11 sectors, 10 closed in the red. The top performer…

  • Real Estate (XLRE) +1.1%

At the bottom…

  • Technology (XLK) -1.9%
  • Utilities (XLU) -1.9%
  • Consumer Discretionary (XLY) -2.0%


The VIX has reached its peak…

VIX chart, key level 35 marked
VIX Daily Candles – Chart via thinkorswim

All our other signals agree. The market is at a technical turning point. 

We plan to continue to build our seasonal position into the selling.


This week we’ll get another look at the labor market with Friday’s new unemployment situation report.

Besides that, we’ll be listening to whatever the Fed might say at its secret meeting today.


*Low Float
^Open Position

*ATXI resistance at $12.50
*BEAT on watch
*SOBR resistance at $3.25
FNGR support at $3
HROW on watch
SAVA resistance at $50, support at $40
EVTL support at $9
DCPH support at $17
RVNC support at $24
FREY support at $14
HLIT support at $12
CANO support at $8, resistance at $9

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