We had a resting GTC order filled at our profit target in the Paid-to-Play portfolio today:

We had a resting GTC order filled at our profit target in the Paid-to-Play portfolio today:

From the desk of Willie Delwiche.

With fear subsiding but strength slow to emerge, downside tactical risks are rising. We reduced the equity exposure in our Tactical Opportunity portfolio and have moved more cash to the sideline.

From the desk of Willie Delwiche.

Households Stick With Stocks

Household equity exposure is ten percentage points below its November 2021 peak. Even with that decline, it is only now approaching its long-term average. Bond exposure remains below its long-term average and cash exposure in October moved above its long-term average for the first time since COVID. 

Why It Matters: Moods are sour, but for all the talk of rampant pessimism & historic levels of bearishness, individual investors have not abandoned stocks. This is as evident in the AAII asset allocation survey as it is in the latest ETF flow data. For the amount of pessimism that is being seen elsewhere, there is relatively little cash on the sidelines. If there is an underowned and unloved asset class it is either bonds or commodities, not stocks.  

In this week’s Sentiment Report we take a closer look at how investors are feeling and how that squares with what they are doing.

This is the video recording of our November 2, 2022, Inside Scoop Weekly Strategy Session.

The next new position in our Paid-to-Play portfolio is:

We had a resting GTC order filled at our profit target in the Paid-to-Play portfolio today:

Dogecoin and other meme coins are seeing a boom off the back of Elon Musk's takeover of Twitter.

It isn't isolated to the Doge. A slew of meme coins have been born since Elon tweeted an image of a Shiba Inu dog wearing a Twitter t-shirt for Halloween.

It's hilarious that his tweets never fail to pump these things.

So, is a new meme coin season upon us?

We debuted a new scan recently which goes by the name- All Star Momentum.

All Star Momentum is a brand new scan that guides us toward the very best stocks in the market. We have incorporated our stock universe of Nifty 500 as the base this time around. Among the 500 stocks that we follow, this scan will pump out names that are most likely to outperform the market.

This week we're looking at a stock from the industrial manufacturing sector. Stocks from this sector continue to show strength as the market continues to rally.

We retired our "Five Bull Market Barometers" in 2020 to make room for a new weekly post that's focused on the three most important charts for the week ahead.

This is that post, so let's jump into this week's edition.

The largest insider transaction on today's list was reported in a Form 4 filing by former Coca-Cola $KO director Herbert Allen.

Allen reported a purchase worth roughly $2 million.

From the Desk of Kimmy Sokoloff

Today is more of a wait-and-see day until the FOMC announcement this afternoon.

How do I measure performance?

In a nutshell, this is a question I received from a member of the All Star Charts community today.

Well, it depends. 

The short and obvious answer: I trade to make money. 

If I’m making money, good. If I’m not, bad.

Of course, there are also more nuanced answers and considerations – some more relevant than others. They come down to relative performance.

From the Desk of Kimmy Sokoloff

Messy action all around today.

The market was up a lot pre-market and gave it all back early morning.

From the desk of Willie Delwiche.

The Scales are more balanced than last month but are still tipped toward risk and away from opportunity. 

Macro folks are sorting out just how bearish they need to get while market folks are trying to figure out just how bullish they should get. From my perspective, less macro-related volatility could help stocks build on their October gains heading into year end. But there isn’t much evidence of that taking place just yet. With that, the inability of the recent rally to show sustainable strength (and more new highs than new lows) suggests caution remains warranted. 

Our Weight of the Evidence Dashboard fills in the details and includes a few charts that have our attention heading into November.

We've adjusted a position in the Paid-to-Play portfolio today:

As technicians, we pride ourselves on never being dogmatic in our approach. If new data that invalidates our initial thesis presents itself, we're always willing to flip our approach.

Yesterday, we wrote that Ethereum testing a significant support zone suggests this rally is mean-reverting in nature. In that same breath, though, we noted that it's wise to treat every chart on its own merits.

If you adopt an overly broad picture of markets, you'll often miss some of the most straightforward trading opportunities.

With all that said, a few names are shaping up nicely in this tape.

Our list is full of insider buys by company CEOs today.

The largest insider transaction is a Form 4 filing by the CEO of Biohaven Pharmaceutical Holding Company $BHVN, Vlad Coric.

From the Desk of Kimmy Sokoloff

October turned out to be a decent month for the overall market.

Let's see what November brings.