From the Desk of Kimmy Sokoloff

The market took a healthy pause today, and the $SPX held onto 3,800 support. The next level of support is 3,772.

So far this week, the market has shrugged off bad tech earnings. Let's see what $AAPL and $AMZN bring us tonight.

We'll also see if the $SPY holds onto 380 and then 378. If not we have room down to 376.55.

You certainly see it in life - the losers usually continue to lose. And winners win.

It's the same thing in the stock market. Winners tend to keep on winning, and the losers remain losers for a reason.

With the whole ESG scam unraveling over the past couple of years, the market has voted with their dollars.

That's what pays.

Not cute bed time stories. Actual Dollars.

Forget the narratives. I want to know what investors are ACTUALLY doing.

And as we have documented here consistently, the voting dollars are being used to buy Energy.

But I continue to be impressed with the strength in Energy stocks, despite the correction we've seen in Crude Oil Futures.

Look at that relative strength:

From the Desk of Kimmy Sokoloff

Yesterday, the $SPX pushed its way through the 50-day moving average at 3,860, then reversed course to close below it.

I mentioned this is a resistance level where the market might need a breather.

We got a new Form 13D from our favorite corporate raider yesterday, as Carl Icahn revealed  an increased ownership stake in Southwest Gas $SWX.

Icahn now owns 9.8% of outstanding shares, a very slight uptick from the 9.7% he reported on September 7.

Welcome to the 2 to 100 Club.

As many of you know, something we've been working on internally is using various bottom-up tools and scans to complement our top-down approach. It's really been working for us!

One way we're doing this is by identifying the strongest growth stocks as they climb the market-cap ladder from small- to mid- to large- and, ultimately, to mega-cap status (over $200B).

Once they graduate from small-cap to mid-cap status (over $2B), they come on our radar. Likewise, when they surpass the roughly $30B mark, they roll off our list.

But the scan doesn't just end there.

We only want to look at the strongest growth industries in the market, as that is typically where these potential 50-baggers come from.

From the Desk of Kimmy Sokoloff

Tech did not lead the way higher.

And the indices still chugged along.

From the Desk of Steve Strazza @Sstrazza and Alfonso Depablos @AlfCharts

Stocks are back in bear market rally mode for the second time since this summer!

Whether this is the beginning of a new bull market is something we can only know in hindsight. 

Fortunately, defining the current rally appropriately is not a prerequisite for participating in it. And the latter is all we’re worried about.

We want to position ourselves in the strongest stocks from the strongest groups and use them as vehicles to benefit from the counter-trend move that's underway.

We discussed this in more detail on today’s Strategy Session. Click here to review the recording and the chartbook.

Now, let’s dive in and check out some of our favorite setups from our Inside Scoop universe.

This is the video recording of our October 26, 2022, Inside Scoop Weekly Strategy Session.

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.

This week we're looking at the stock from the capital goods sector. Stocks from his sector continue to show strength in a consolidation type of market setup.

This is still the one folks.

I've been in the camp that we're only getting bull markets in stocks around here if the Dollar is falling.

And well, a funny thing happened last month: The Dollar started falling, particularly against the most important crosses.

This happened once the journalists finally realized the Dollar had been so strong. And you know what tends to happen when they finally get the memo ;)

Take a look at the Dollar rolling over vs both the Euro and British Pounds:

From the Desk of Kimmy Sokoloff

Two heavy hitters, $GOOGL and $MSFT, reported last night, and they both traded lower after hours.

Futures seem to be holding steady.