9/28/22 Buy The Dip


Tuesday, the markets bounced back from oversold conditions … to start the day anyways…

The major indexes rose as much as 2% in the opening hour.

By the end of the day, sellers got their way, and the markets closed mixed, near flat.

Photo of traders in the NYSE starring in disbelief.
Photo by Lukas Jackson from Reuters
  • Dow Jones -0.4%
  • Nasdaq +0.2%
  • S&P 500 -0.2%
  • Russell 2000 +0.4%

Bitcoin^ failed to hold above $20,000. This morning it’s trading under $19,000, down about 8% in the last 24 hours.

Sector Round-Up

It was a mixed bag here too.

4 of the 11 sectors found enough buyers to close in positive territory. At the top…

  • Energy (XLE) +1.1%

At the bottom…

  • Real Estate (XLRE) -1.3%
  • Utilities (XLU) -1.7%
  • Consumer Staples (XLP) -1.7%

The rest of the sector ended within 0.5% of their previous close.

While there’s little to celebrate at the moment … A base is forming, and we’ve begun buying.


The market is ready to turn…

SPY chart with RSI levels
SPY Daily Candles w/10-day RSI – Chart via thinkorswim

As RSI levels reach extreme oversold conditions, you can clearly see a base forming on the daily chart.

The market is begging to turn, and the season of weakness is nearly over.

We believe there is little downside left and have begun buying the dip.

We’ve begun establishing our seasonal position in both S&P 500 and the Nasdaq.


It’s a slow week to close out Q3.

We’re excited about October … Which is a bear killer.

We’re excited about Q4 … Which is the beginning of the political cycle’s “sweet spot.”

Your complete October outlook will be delivered on Friday.


*Low Float
^Open Position

*BEAT resistance at $3
HROW resistance at $10
LGHL support at $2
SAVA support at $47
DCPH support at $17
RVNC support at $24
AMPS support at $12.60
FREY support at $14
CANO support at $8

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