Weekly Update: Why It’s Still Hard to Be Bullish
The October rally came to an abrupt end this week.
The Nasdaq 100 fell over 7%, and the S&P 500 was down about 4.5%.
Both indexes are failing at their respective 50-day moving averages (MAs).
Even if they were able to push through to the upside, it would be only the first hurdle in returning to a bull market.
As long as the market continues to trade below a declining 50-day MA, it is hard to be overly bullish.
Portfolio Review
The quickest profits are coming on the short side right now, which is where I will continue to focus this coming week.
If you are not comfortable shorting stocks or just don’t like to, I understand.
For those who play both sides of the market, however, I hope you saw the newest Stealth Trades alert I sent this week on Canadian Solar Inc. (CSIQ).
CSIQ is approaching a likely failure point on the chart, setting up a nice entry for a short trade.
I’ve drawn a white dashed line on the chart above to highlight this key support/resistance level.
The stock broke out from that level in late July after a clean consolidation pattern.
It then served as support, propping the stock up for several months. But CSIQ broke this support zone in October.
When a leading stock breaks down below a prior breakout level, especially in a decisive move lower like CSIQ made, it becomes a broken leader.
It’s a clear sign that institutions are selling and the party is over.
What was support usually becomes resistance, so I expect to see shares hold below the $35-$36 range.
Stealth Trades Watchlist
Click here to view this week’s full Watchlist!
But remember that not all of the stocks on our Watchlist are actionable…
When it’s time to make an official recommendation for our Trade Tracker, I’ll let you know on our Alerts page right here!
Join the Insiders
Now, if you’ve ever wondered how I developed a proven track record of trading along the insiders like corporate CEOs, CFOs, executives and board members…
Do yourself a favor and check out my latest Insider Effect presentation!
Corporate insiders are always buying or selling shares in the companies they operate. These folks have a footing of knowledge that Main Street investors simply do not.
I covered my strategy for trading alongside corporate insiders and generating potentially massive gains as a result.
Live Coaching Session
I hope you’ll join me on Monday, Nov. 7, for our next live Stealth Trades session at 3:00 p.m. ET…
We’ll cover all of our new stocks on the Watchlist as well as the rest of the stocks inside Stealth Trades.
You need to attend this session to get the most from your subscription!
In the meantime, you can watch the replay of our latest Stealth Trades session right here.
Best wishes for your trading,
Ross Givens
Editor, Stealth Trades
P.S. Click here to learn more about my Insider Effect strategy and see what you could be missing out on.