Weekly Update: Bulls Show Signs of Life
Editor’s Note: All major U.S. stock markets are closed Monday, Sept. 5, in observance of Labor Day, so we will NOT be hosting a live coaching session that day. I look forward to seeing you again next Monday, Sept. 12!
As expected, last Friday’s heavy selling carried into this week.
As of Friday morning, the S&P 500 is down just over 2% for the week.
But I did see signs of recovery on Thursday…
After starting the day lower, stocks were able to recover their losses and end the day in positive territory.
This is known as an “upside reversal day,” and it is one of my favorite tricks for buying on pullbacks.
End the Downtrend?
An upside reversal day is when a stock or index makes a new low but manages to recover and finish the session up on the day.
I have pointed out the upside reversal day on Thursday as well as two previous examples in the chart below…
We often see this kind of action when a downtrend is coming to an end.
(Side note: Watch for these in individual stocks as well, as it often signals the end of a downturn.)
And for the indexes, this level would also make sense as the low.
The Nasdaq, represented by the Invesco QQQ Trust (QQQ) below, had a hard time breaking through this area back in July when the market was bottoming.
As regular readers know, past resistance areas often become new support areas, and it seems to be holding so far.
As we know, anything can happen in the market…
Federal Reserve Chairman Jerome Powell could open his big mouth again and tank the market without warning.
Or stocks could surge on any sign of hope.
Stealth Trades Watchlist
Going forward, your Weekly Updates will look a lot more like this one…
They’ll include more information on our current stock recommendations and put less of a focus on our weekly Watchlist.
Don’t worry – The full Watchlist is still available on our website right here!
But it’s important to 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
Remember, Monday’s Live Class is canceled because the markets are closed for Labor Day.
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.