Weekly Update: Market Still Not Making It Easy

Ross Givens on September 9, 2022

Last week, I pointed out the upside reversal day we saw in the S&P 500 and how I thought the market would bounce from there.

I also discussed the 3,900 area being a key support level for the index.

Stocks broke above this level in late July on bullish volume, which triggered me to call the low in the market and that the bear has finally ended.

What was once resistance often becomes support, so this gave us another reason to expect stocks to move higher for the week.

***Daily Chart of S&P 500 Index – Source: TradingView***

Things played out about as expected, and the indexes posted a solid gain for the week.

The market is still not making it easy though…

Volatility remains high, especially in the strongest areas of the market where we try to focus.

Take Enphase Energy, Inc. (ENPH) for example, a market-leading solar energy stock…

ENPH has been a big mover showing clear signs of institutional buying.

(We actually scored a nice win on this stock in my Alpha Stocks service.)

This week, the stock attempted another move higher…

**Daily Chart of Enphase Energy, Inc. (ENPH) – Source: TradingView**

After forming a base for four weeks, Enphase broke out on big volume to make new highs.

Then, on Friday, the stock sucked right back into its base, falling 6% in the first few hours.

Nail Down Profits

In a “healthy” bull market, reversals like this are rare. Trends hold well, and breakouts last several days or weeks.

I bought ENPH in my personal account last week near $278 when it tested support and sold half my position into the highs.

But I dumped the rest Friday morning for a 6% gain when it reversed.

That continues to be the theme of this market, which began last year…

Nail down profits quickly when you have them because the moves often don’t last long.

Nimble traders have done fine in this market. But longer-term investors are having a tough go at it. It is indeed a frustrating environment.

But we must be flexible and adapt our tactics to the conditions of the day.

Portfolio Review

Two of our recent trades have gone the wrong way and resulted in small losses (-9.8% and -4.8%).

Neither of these are crippling, but it’s never fun to lose money.

McKesson Corporation (MCK), on the other hand, has performed beautifully.

**Daily Chart of McKesson Corporation (MCK) – Source: TradingView**

We already sold half the position near the highs last month.

But if MCK can break out above $375, we could see another leg higher to tack on even more gains in this trade.

If you have not already done so, I recommending taking partial profits on this one just in case the stock fails at the highs.

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 talked more about this in my latest presentation, which you can watch at your convenience right here.

I covered my strategy for trading alongside corporate insiders and generating potentially massive gains as a result.

Just click here to learn more about my Insider Effect strategy and see what you could be missing out on…