From the Desk of Kimmy Sokoloff

We saw a bearish reversal yesterday afternoon in the indices.

For today, I'm watching to see if the SPX can hold 3,638, then 3600. We'd need to get back above 3,689, then 3,700, to head back uphill. The $SPY has support at 363, then 360.

I interrupt this bear market to bring you stocks that are going up.

While people are crying about their stocks going down, we're focused on the winners.

You know why? Because winners tend to keep on winning.

And losers? Well, we don't care so much for you. By definition, few people do.

Here's a stock making new 6-month highs this week.

You may have heard of it:

From the Desk of Kimmy Sokoloff

That was a fun day in the live trading room. J.C. joined us, and it was fantastic!!

Now, on to the markets folks.

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.

One of the things that continues to really stand out to me is the relentless outperformance in Energy stocks, even in the midst of a major correction in Crude Oil.

You can see it perfectly in this chart. Energy stocks today are making new 52-week highs relative to Crude:

The bond market is the biggest and baddest market of them all.

All these crypto currencies can go to zero and no one who matters will care.

The entire pot industry can disappear tomorrow and it won't matter.

Small-cap stocks aren't relevant, from a systemic perspective.

Do you know what matters? The bond market.

And if there's real stress out there in financial markets, you are going to see it show up in bonds.

It's just math.

But a funny thing happened in Q2 this year. High Yield Credit spreads began to tighten.

If there was real stress, you would be seeing them widening.

In this chart below we're looking at lower lows in the S&P500 but higher lows in the ratio between Junk Bonds and US Treasury Bonds:

From the Desk of Kimmy Sokoloff

The SPX futures are back above 3,700. That's a level I'd like to see maintained.

And I'd prefer SPX above 3712.

The largest insider transaction on today’s list is a Form 4 filing by the senior vice-president of Dave & Buster's Entertainment $PLAY.

This is the fourth Form 4 filing reported for Dave & Buster’s since last week.

This is the video recording of the October 2022 Mid-month Conference Call.

We discussed:

• The DJ Industrial Avg at the Pre-Covid Highs
• Fewer Stocks are making New Lows
• Small-caps, Mid-caps & Micro-caps diverging positively
• Sentiment is at a historic bearish extreme
• Credit Spreads tightening the past 4 months
• Negative Correlation Between US Dollar & Stocks intact
• Consumer Discretionary outpacing Staples
• Sector Level trends are improving
• Energy making new 52-week highs relative to Stocks
• Shorting these REITs and Software Stocks
• Industrials & Regional Banks making new 52wk relative highs
• More Bullish Options Activity in Occidental Petroleum
• Coal Stocks Setting Up For Breakouts
• Industrial Stocks ready to bounce
• Financials holding Support
• Copper/Gold ratio not confirming new highs in Yields
• 5 & 10/yr Breakevens peaked quarters ago
• Emerging Markets down near critical levels
• Seasonally the best time to buy stocks
• List of my favorite stocks to buy

From the Desk of Kimmy Sokoloff

Today was more of a consolidation day for the market. I'd prefer that the SPX hangs onto 3,669, which it did (and hopefully does in the days ahead).

It would be nice if we saw the recent bottom become a tradable low from which we trend higher.

This is the video recording of our October 19, 2022, Inside Scoop Weekly Strategy Session.