From the Desk of Kimmy Sokoloff

$QQQ pushed past its eight-day moving average.

Now we need to see if the indices have continuation today.

This has to be one of the world's most important trends right now. How could it not be?

You hear all this nonsense about the S&P493 and how it's only 7 stocks going up.

But those are just lies. That's not how the market works, and that is certainly not what's been happening this year.

The real trend here is in the outperformance of the largest companies, particularly mega-cap growth, relative to other indexes with more diversified sector exposure and market-caps.

This is the Nasdaq100 making new all-time highs relative to the much broader Russell3000 Index:

From the Desk of Steve Strazza @Sstrazza

When investing in the stock market, we always want to approach it as "a market of stocks."

Regardless of the environment, there are always stocks showing leadership and trending higher.

We may have to look harder to identify them depending on current market conditions. But there are always stocks that are going up.

The same can be said for weak stocks. Regardless of the environment, there are always stocks that are going down, too. 

We already have multiple scans focusing on stocks making all-time highs, such as Hall of Famers, Minor Leaguers, and the 2 to 100 Club.

We filter these universes for stocks that are exhibiting the best momentum and relative strength characteristics. 

Clearly, we spend a lot of time identifying and writing about leading stocks every week, via multiple reports.

Now, we're also highlighting lagging stocks on a recurring basis.

Welcome to the Short Report.

From the Desk of Kimmy Sokoloff

The indices had somewhat of a tiny relief bounce.

But it wasn't really much to speak of...

This is the video recording of the October 4, 2023, Hot Corner Insider Weekly Strategy Session.

From the Desk of Steve Strazza and Alfonso Depablos

The largest insider buy on today’s list comes in a Form 4 filing by Robert E. Cauley, CEO of Orchid Island Capital $ORC.

Cauley reported an ORC purchase in the amount of $235,700.

From the Desk of Kimmy Sokoloff

I think the S&P 500 has potential to drop below its 200-day moving average and snap back.

I think we can have another push lower, and then we get relief.

This is the video recording of our October 3rd Monthly Charts Live Strategy Session

From the Desk of Kimmy Sokoloff

No reprieve from the selling today, an ugly one overall.

$SPY is nearing its 200-day moving average.

It might be a wild day tomorrow, too.

From the Desk of Alfonso Depablos @Alfcharts

Sellers have a hold on equity markets as internal weakness expands and downside momentum picks up.

When looking for evidence of additional downside risk, some of the most valuable information we have is in the price action of the weakest areas. The rationale is that they should break down first and lead the rest of the market lower.

With how poorly the smallest stocks have performed this year, the Russell Microcap Index $IWC is the perfect signpost to help us determine the next move for stocks. 

The chart below shows IWC resolving to the downside from a descending triangle formation. It just closed at its lowest level in roughly three years.

From the Desk of Steve Strazza and Alfonso Depablos

The largest insider buy on today’s list comes in a Form 4 filing by María Asunción Aramburuzabala, director of Coty Inc $COTY.

Aramburuzabala reported a COTY purchase with a total value of $5.4 million.

From the Desk of Kimmy Sokoloff

The market keeps trying to hold these levels.

It would be a lot less painful if we had a quick swoosh lower.