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Wednesday, September 27, 2023

Market Update Hump Day - The Selling Continues

 Wow, we've gone from boring markets, back to exciting markets in only a couple days, but this is what happens when traders return from Yom Kippur, and pick up where they left off, on Friday. 

Didn't I tell you that when traders returned from their long summer vacations, they were going to trash stocks? I'm sure glad I told people to sell the summer rally, as I also did!      

Yesterday's action 

I knew who was selling yesterday, before they even showed their hand on CNBC Fast Money. East coast traders....   

I actually alerted to the $VIX breakout around 10:30 AM, and the selling accelerated from there.  

Of course, the $VIX continues to trade below the 20 level, which is relatively low, and that's because there really isn't much fear in the market. This may also have something to do with the 0 day expiration options market, but I'm not sure... 

I can tell you that they didn't have any trouble driving the $VVIX to new recent highs.

$VVIX ($VIX of the $VIX)

$SPX - 5 min. chart view - tiny moves  

I think the $SPX can sell off a little lower, before we head into buying season. 

Tech is Trashed 

I pointed to Amazon, when the selling began, and I'd be a buyer here. 

Every Money manager on Wall Street wants to own this one at a discount!  

New Leadership 

Funny thing, after yesterday's closing bell; I was looking around at some of the damage being done to this market, and the selling has been very selective/ targeted. 

Of course Apple ($AAPL), and Amazon were among the biggest short term losers, but that's just the tip of the iceberg! 



$UPS - this one is probably being used to drive the Transports lower 


$UNP - ""


$TSE - boy does this chart tell a story! 


A better example of beaten up stocks, that are beginning to look interesting might be 

Peloton $PTON  - I haven't updated the chart in months. It just is what it is - up 5% on a down day. 

I have countless similar examples; and I think the market is setting up to appoint a whole new group of leaders, as we trade into 2024. 

I'm so excited after finding this, that I could hardly sleep, and I have countless charts to sift through. 

I even created a new folder dedicated to this group, of heavily beaten down stocks.  

I'm out of time,



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