One of the things that continues to really stand out to me is the relentless outperformance in Energy stocks, even in the midst of a major correction in Crude Oil.

You can see it perfectly in this chart. Energy stocks today are making new 52-week highs relative to Crude:

The bond market is the biggest and baddest market of them all.

All these crypto currencies can go to zero and no one who matters will care.

The entire pot industry can disappear tomorrow and it won't matter.

Small-cap stocks aren't relevant, from a systemic perspective.

Do you know what matters? The bond market.

And if there's real stress out there in financial markets, you are going to see it show up in bonds.

It's just math.

But a funny thing happened in Q2 this year. High Yield Credit spreads began to tighten.

If there was real stress, you would be seeing them widening.

In this chart below we're looking at lower lows in the S&P500 but higher lows in the ratio between Junk Bonds and US Treasury Bonds:

From the Desk of Kimmy Sokoloff

The SPX futures are back above 3,700. That's a level I'd like to see maintained.

And I'd prefer SPX above 3712.

The largest insider transaction on today’s list is a Form 4 filing by the senior vice-president of Dave & Buster's Entertainment $PLAY.

This is the fourth Form 4 filing reported for Dave & Buster’s since last week.

This is the video recording of the October 2022 Mid-month Conference Call.

We discussed:

• The DJ Industrial Avg at the Pre-Covid Highs
• Fewer Stocks are making New Lows
• Small-caps, Mid-caps & Micro-caps diverging positively
• Sentiment is at a historic bearish extreme
• Credit Spreads tightening the past 4 months
• Negative Correlation Between US Dollar & Stocks intact
• Consumer Discretionary outpacing Staples
• Sector Level trends are improving
• Energy making new 52-week highs relative to Stocks
• Shorting these REITs and Software Stocks
• Industrials & Regional Banks making new 52wk relative highs
• More Bullish Options Activity in Occidental Petroleum
• Coal Stocks Setting Up For Breakouts
• Industrial Stocks ready to bounce
• Financials holding Support
• Copper/Gold ratio not confirming new highs in Yields
• 5 & 10/yr Breakevens peaked quarters ago
• Emerging Markets down near critical levels
• Seasonally the best time to buy stocks
• List of my favorite stocks to buy

From the Desk of Kimmy Sokoloff

Today was more of a consolidation day for the market. I'd prefer that the SPX hangs onto 3,669, which it did (and hopefully does in the days ahead).

It would be nice if we saw the recent bottom become a tradable low from which we trend higher.

This is the video recording of our October 19, 2022, Inside Scoop Weekly Strategy Session.

From the Desk of Kimmy Sokoloff

I spoke in the live trading room yesterday about how $NFLX earnings, either good or bad, has not really affected the market recently.

The futures did bounce last night, but this morning we're roughly flat.

From the Desk of Kimmy Sokoloff

The market gapped up this morning and came back to fill yesterday's high.

The market overall bounced off of that gap-fill and held steady until news came out on $AAPL late afternoon.

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

While the S&P 500 and other major averages made new lows last week, fewer stocks made new lows beneath the surface. 

Not only is downside participation narrowing. But the list of new highs is slowly growing. 

While it’s nowhere near where it needs to be to give us a bullish signal on the overall market, it is giving us a growing number of opportunities in individual names.

Let’s talk about some charts that we like buying (or preparing to buy) from our Inside Scoop universe right now.

The Dow Jones Industrial Average is working on its 3rd straight week of gains.

In case you missed it, you have to see the look on Maria Bartiromo's face after I told her Friday that we're 4 months into a new bull market.

Priceless.

I think she was into it though. Check out the full clip on Fox Business here: Mornings with Maria

This weekend I published a note about how underrated I find the Dow Jones Industrial Average to be among traders and investors.

The Dow is not something I want to fight. In fact, I was specifically taught not to.

Make sure to check out some of my favorite Dow stocks to own right now.

But today I want to focus on sentiment. More specifically, the extremes in bearish sentiment and overall pessimism.

From the Desk of Kimmy Sokoloff

That was a huge move overnight in the futures market. We're currently trading above gap-fill on the SPX at 3,739.

Now, let's see if we back and fill some.