From the Desk of Kimmy Sokoloff

It's like Thursday never happened.

I was looking for a consolidation, with a possibility of $SPY 364 to hold roughly.

That was not the case.

This is the video recording of our October 14, 2022, Inside Scoop Weekly Strategy Session.

There are a lot of trends in markets that are worth paying attention to.

Remember, asset prices trend. They're not random.

We have the data.

So one major trend we want to make sure we're not ignoring is in Energy stocks relative to Technology.

Look at the ratio between them making new multi-year highs, yet the S&P500 weighting in energy is still less than 5% of the entire index. But Technology is still almost 25% of the index.

Is that weighting sustainable?

From the Desk of Kimmy Sokoloff

Happy Friday.

That was a nice reversal yesterday in the indices. I wouldn't mind a little consolidation today.

The most significant insider transaction on today’s list was reported in a series of Form 4 filings by Hill Path Capital Partners LP.

The investment company reported a total of roughly $10 million in purchases of Dave & Busters $PLAY.

From the Desk of Kimmy Sokoloff

What a day.

We went from SPX lows at 3,491 to a close at 3,669. It was nice to be up over 2% versus being down 2% for a change.

From the desk of Steve Strazza @Sstrazza

Dividend Aristocrats are easily some of the most desirable investments on Wall Street. These are the names that have increased dividends for at least 25 years, providing steadily increasing income to long-term-minded shareholders.

As you can imagine, the companies making up this prestigious list are some of the most recognizable brands in the world. Coca-Cola, Walmart, and Johnson & Johnson are just a few of the household names making the cut.

Here at All Star Charts, we like to stay ahead of the curve. That's why we're turning our attention to the future aristocrats. In an effort to seek out the next generation of the cream-of-the-crop dividend plays, we're curating a list of stocks that have raised their payouts every year for five to nine years.

We call them the Young Aristocrats, and the idea is that these are "stocks that pay you to make money." Imagine if years of consistent dividend growth and high momentum and relative strength had a baby, leaving you with the best of the emerging dividend giants that are outperforming the averages.

From the Desk of Kimmy Sokoloff

As I write this morning, the futures are trading higher, with the SPX at 3,600 ahead of the release of September CPI data.

I'd like to see the SPX hold onto 3,600 and trend higher from here, but time will tell.

The levels to watch on the $SPY are support at 355.71, then 354.15. Resistance is  is 360, then 364.

The largest insider transaction on today's list is a Form 4 filing by the Greenwich-based hedge fund Viking Global Investors.

The fund reported a purchase worth roughly $40 million in the small-cap biotech Inhibrx $INBX, increasing its total stake to 17%.

In bear markets you tend to get more and more stocks making new lows.

We haven't seen that.

In bull markets you tend to get more and more stocks making new highs.

We haven't seen that either.

So are we going to finally get that expansion in the new lows list?

Or are these meaningful divergences?

From the desk of Steve Strazza @Sstrazza

Welcome to the 2 to 100 Club.

As many of you know, something we've been working on internally is using various bottom-up tools and scans to complement our top-down approach. It's really been working for us!

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 only want to look at the strongest growth industries in the market, as that is typically where these potential 50-baggers come from.

From the Desk of Kimmy Sokoloff

It was a very uneventful day, even though we had the Fed minutes out at 2:00 p.m. ET.

The $SPY stayed below 360 and held onto the lows at 355.71.