No Man's Land For Dow

JC Parets
September 19, 2022

Great weekend of Charts and Football for me!

How about you?

More Charts than Football? Or the other way around?

I definitely got a healthy dose of both.

And this one for me definitely stands out.

The way I learned it from Ralph Acampora many years ago was, "DON'T FIGHT PAPA DOW"

So here's the Papa Dow he was referring to. I included the key levels we've been focused on since the 2018 correction. They've really helped and I think they continue to.

But for today, let's focus on the fact that prices are both below overhead supply and above support from the summer lows.

From any sort of intermediate-term perspective, this is what we call "No Man's Land":

Around here we like to incorporate a Weight-of-the-evidence approach, so one chart or data point is never going to be the only reason why we would express a view.

BUT, man if there's one chart that tells a good story about what's going on, it's probably this one.

Remember, the new lows list peaked in mid June, that was over 3 months ago.

Some of the worst areas hit by this bull market, things like Biotech and ARKK, bottomed in May!

So, before stocks can go up, they need to stop going down.

Have they stopped going down? Or did they just stop going down, for now?

Will we see an expansion in new highs?

Will Papa Dow be able to exceed those August highs this Fall?

You tell me.

But we'll be going over all of this tomorrow night 6PM ET on our Live Mid-Month Conference Call.

We'll discuss the overall market environment and our favorite trades and strategies to profit from it all.

Premium Members can register here if you haven't already.

And if you don't have access to the Event yet, shoot us an email or give Mary a call: +1 (323) 421-7910

See you there!

JC

 

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