CPI data for September was released on October 13 -- the turning point for the market. We trended higher the rest of the month after that news.
Will today's release of CPI data for October (8:30 a.m. ET) be a turning point where we trend lower? Do we bounce, even temporarily? It's anybody's guess.
We use various bottom-up tools and scans internally to complement our top-down approach.
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 are only interested in the strongest growth industries in the market, as that is typically where these potential 50-baggers come from.
The number of issues that traded on the NASDAQ in any given week just prior to COVID was somewhere around 3500. Last week 5500 issues traded on the NASDAQ.
“Why do you rob banks?” authorities asked notorious bank thief Willie Sutton.
His response: “Because that’s where the money is.”
We're not planning on robbing anybody, but if today's trade plays out like we think it can, it might feel like we're stealing. Only, we won't need to worry about the authorities coming after us, nor will we need to feel bad about it.
Our Analyst Willie Delwiche says that a basic requirement for many bullish ideas right now is that any stock or ETF in question needs to be above August highs. Anything below August highs is subject to a rude reversal. I'm on board with this line of thinking.
So, today's trade is in an American bank that is above its August high and showing signs of wanting more.
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 is the most chaotic turn of events I've experienced being involved with crypto. For those who somehow missed what's happening, here are the brief details...
One of the largest crypto exchanges on the planet, FTX, has experienced a significant liquidity crunch. As a result, Binance has entered into a non-binding agreement to acquire FTX, helping to cover the liquidity crunch.
Any and all funds held on FTX are now gone.
It's the biggest blow-up in the industry's history.
