Market Milestones: High Beta Beta Charts

[Image] Good morning , Last Friday’s bearish gap and go started a 3rd wave move that lasted all week and sent the SPY tumbling under the August low. High beta tech names such as U, SHOP, TTD, UPWK, FVRR and many more got obliterated on Monday and acted as warning signs of the carnage to come. Few stocks were immune to the market’s indiscriminate selling on Wednesday and Thursday as the market finally started to price in and take seriously the higher for longer narrative. [Image] The ol’ dot plot struck again, causing carnage, chaos and borderline catastrophe for the bulls. Who knew that a few dots on a chart from a handful of Fed officials who can hardly predict what they are going to have for breakfast tomorrow morning, let alone predict their own decisions regarding rates in a year, could wreak such havoc in the market? I guess we all did since it keeps on happing, but it’s still wild. I don’t want to catastrophize this recent 4.5% sell off in the markets so I will let these real headlines do it for me. “The bullish case for U.S. stocks is getting weaker.” Ok, fine that wasn’t so bad. “Dow tumbles more than 300 points to notch third day of losses amid fears of higher rates, government shutdown.” That is better, but I really could not find the kind of fear drenched headline I was looking for. I wanted something like, “Russell 2000 breaks support as economically sensitive stocks simply can’t hang on. Could this be the end of America and humanity as we know it?” IWM [Image]( This absence of peak fear along with many other technical and economic indicators still has me believing that we have a little lower to go on this correction as the QQQ count suggests. A full C wave correction should have the QQQ down into $350-$340 and the SPY falling to $425-$420. Keep in mind that the top of the market could very well be in as complex topping patters are appearing across the board, making solid risk management key during this next move in the market. It would make a lot of sense for the leaders, the strong and handsome alpha charts, think QQQ, to make another higher high while those weak and weird beta charts, think ARKK or RSP, make a lower high. QQQ [Image]( RSP [Image]( ETF of the Week Today’s ETF of the week is SPDR Select Fund – Consumer Staples (XLP). XLP’s top five holdings are PG, COST, PEP, WMT, and PM. XLP has been in a multiyear distribution channel and just broke below a key support on Thursday. RSI is showing a divergence currently. As price moves lower, RSI and has yet to make a lower low compared to the August 22nd low. XLP could create a short-term buying opportunity as bears pile in an already crowded short trade under support. Longer term XLP looks weak and will likely be in the lower high category offering short opportunities later this year if it can grind higher. Buy low, sell high and sell high, buy low. [Image]( Strive On, Yates Craig, RLT & TPN Market Analyst Disclosure: You are responsible for your own trading decisions. ALWAYS, do your own research before investing in any of the above securities. This is not a solicitation to buy/sell ETFs or securities. NEVER invest money in ETFs or stocks that you can't afford to lose. You can lose all of your capital by trading any securities mentioned. These ETFs/securities are very volatile and gain and lose value quickly. We reserve the right to freely trade in any mentioned ETFs or securities. We are not compensated by any mentioned companies. We trade ETFs and securities based on our opinion of intrinsic/possible future value only. We are not registered investment advisors, so always do your own research before buying any securities. Unable to view? Read it [online]( If you no longer wish to receive mail from us, you can [unsubscribe]( Sent from: Real Life Trading in Nashville TN 37221