11/15/22 From Oversold to Launchpad


On Monday, markets chopped around. Each spent some time in positive territory, but all ended the day red and near their lows…

  • Dow Jones -0.6%
  • Nasdaq -1.1%
  • S&P 500 -0.9%
  • Russell 2000 -1.1%

Sector Round Up

While the selloff was broad, it was also restrained. 

10 of 11 sectors ended the day lower. Most lost less than 1%. The lone green sector…

  • Healthcare (XLV) +0.1
Image from Indiana University

At the bottom… 

  • Real Estate (XLRE) -2.7%
  • Consumer Discretionary (XLY) -1.6%
  • Financials (XLF) -1.4%
  • Utilities (XLU) -1.2%

Bitcoin’s Future

Bitcoin^ is trading at $16,800 this morning. Prices have stabilized for the moment.

The bulls and bears are both making their case right now…

We remain bullish for the long term, but as always, please manage your risk.


A Democrat victory would shock the market.

Image from CNN

At last count, there are 17 undecided races in the House. Republicans need to win just 3 to take control.


Yesterday’s selling relieved overbought conditions.

VIX Daily Candles – Chart via thinkorswim

The key level for the VIX is 25. If the selling continues today, we’ll watch this level as a turning point for the market.

While our outlook remains bullish, the day-to-day is a little muddy at the moment…

It’s worth noting that oversold conditions were quickly relieved. The market appears to be setting up for a major bull run into 2023 and beyond.

Our other signals offer no alternative…


It is the week before Thanksgiving. Over the last 30 years, the market has risen more often than not … but has posted losses for the last 4 of the past 5 years.

This Friday is also options expiration day. November’s expiration is typically bullish.

Short-term traders may consider buying calls if the market continues to dip.


*Low Float
^Open Position

*KLXE support at $16
*NINE on watch
PDSB on watch
CABA support at $2.5
IMMR on watch
AVDL resistance at $8
^IMVT support at $12, resistance at $13
TUSK on watch
ETNB resistance at $10
WNC resistance at $25
ELF on watch
GLYC on watch
PCVX resistance at $45
MGNX support at $6.50
^CROX support at $80/85
^RYAM support at $7
VIST support at $14
AVXL support at $14
EYE support at $38
PRVB on watch
OII support at $14
IGT resistance at $24
SFM resistance at $34
MGNI support at $10
ADMA support at $2.85
VVNT support at $8
GILD support at $80

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