Our Ian Culley said it best:

Don’t catch falling knives!

It sounds simple enough. But in reality, traders continue to lose fingers as they reach for downtrending assets.

It's true in stocks, it's true in commodities, and it's true in bonds. It's true in any asset class, really.

And the knives keep falling left and right. Let's avoid getting our hands cut and let's just go with the trend, shall we?

From the desk of Steve Strazza @Sstrazza

Check out this week's Momentum Report, our weekly summation of all the major indexes at a Macro, International, Sector, and Industry Group level.

By analyzing the short-term data in these reports, we get a more tactical view of the current state of markets. This information then helps us put near-term developments into the big-picture context and provides insights regarding the structural trends at play.

Let's jump right into it with some of the major takeaways from this week's report:

* ASC Plus Members can access the Momentum Report by clicking the link at the bottom of this post.

Macro Universe:

• Our macro universe was negative this week as 77% of our list was lower for a median return of -1.07%.
• Lumber $LB was the winner, closing with a 10.86% gain.
• The biggest loser was Silver $SI, with a weekly loss of -10.78%.
• There was a 3% gain in the percentage of assets on our list within 5% of their 52-week highs – currently at 9%.
• Only 11% of our macro list made fresh 4-week highs.
• Meanwhile, 47% of our...

The next new position in our Paid-to-Play portfolio is:

I don't know how you were taught to approach markets.

But I still have Ralph Acampora in my head. I can still hear him yelling, "Don't Fight Papa Dow!!"

He's referring, of course, to the Dow Jones Industrial Average, and respecting the direction of its trend, and its components.

We just saw back to back positive weeks for the Dow Industrials for only the 4th time in 2022. See here.

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

Not sure why people get so upset about the Dow. I find it really valuable and shared some of my favorite hacks here.

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

So here's what this looks like. You can see the Pre-Covid highs that were taken out in Q4 2020. And now here we are, back to the scene of the crime.

...

There have been no developments since last Monday, so today's note will be a brief interim update.

From the Desk of Kimmy Sokoloff

Overnight, the futures held Friday's lows, and now we're back up against resistance.

Not too many names stand out to me right now, I think maybe because they just keep going back and forth.

In a busy morning for oil and gas deals, Continental Resources $CLR announced a merger agreement with the company founder and billionaire Harold Hamm.

Over the weekend, Hamm boosted his original offer from this summer to purchase the existing $4.3 billion worth of shares that he and his family do not already own for $74.28 per share.

Friday morning I was in the city chopping it up with Maria Bartiromo.

She was surprised at what I had to say.

But I think she was intrigued.

Also, huge shoutout to Fox Business on their 15th Anniversary. It's been amazing to watch them continue to dominate financial TV.

Congrats all around.

Check out the full clip from Friday morning:

There is a constant conversation among market participants about which indexes are the better representation of the stock market, particularly in the United States.

While the media often quotes the Dow Jones Industrial Average daily changes, professionals tend to steer towards the S&P500.

The argument normally revolves around the price-weighted nature of the Dow Jones Industrial Average vs the market-cap driven S&P500.

The diversity of 500 stocks in the S&P is also a key point when compared to just 30 stocks for the Dow.

Today, I just wanted to remind everyone why I think the Dow Jones Industrial Average is underrated and why I think it is still one of the most useful indexes for any stock market participant.

First of all, the Dow Jones Industrial Average and the S&P500 have a very high positive correlation to one another.

This is the weekly post that aggregates all the charts we put together throughout the week and organizes them all into one, easy to flip through deck.

In yesterday's note we talked about how the Dow Jones Industrial Average went up in price for the 2nd consecutive week. This isn't something we've seen happen too often in 2022.

But what else happened this week?

Well, we got fewer stocks making new 52-week lows on the NYSE. The peak in new lows was back in June, which was 4 months ago.

You can see it in shorter-time horizons as well. Look at the S&P500 new 63 day low list continuing to deteriorate (63 days = 3 months = 1 quarter):

This is the weekly post that aggregates all the charts we put together throughout the week and organizes them all into one, easy to flip through deck.