Living On A Prayer

JC Parets
January 31, 2022

It's much better living for stock market bulls if we're above those October lows.

Otherwise, I think you're just living on a prayer.

And why the October lows?

That's the last line of defense for the world's most important Indexes.

We'll be going over all of this on our Live Strategy Session Tuesday Night. Premium Members can register here for that if you haven't already.

But it's those October lows that we're focused on. Notice how the Nasdaq, as much as it tried to fight back throughout the week, is still stuck below:

I feel much more comfortable putting on long positions in the stock market if the indexes are above those October lows.

You can see here how the Dow Jones Averages are still hanging on just fine:

I think that's encouraging.

Markets rarely give us such clean levels to trade against. But in this case, I think we have them.

We want to focus on stocks that did not get oversold this month. I think we want to own stocks and sectors that are making higher lows vs those October lows, not lower lows. And I think a good rule of thumb here is owning the names that are already above their Q4 highs.

Those are the things I believe will keep us out of trouble.

We'll discuss all of this and everything else on Tuesday night!

JC

 

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