You certainly CAN profit from these upside rallies

The bottom isn't in just yet. You are receiving this email because you signed up to receive emails from True Market Insiders, rebranding to Sector Edge. [Unsubscribe here]( Keep the emails you value from falling into your spam folder. [Whitelist True Market Insiders](. Forgot your login information? Click [here](. [Image] Weekly Market Update Today is October 7, 2022 Good afternoon and Happy Friday. What a difference a week makes! Last Friday at this time we were looking at a market that was so deeply oversold, we could only find a single sector where Demand was in control. To remind, the sector breadth picture (shown on the US Industry Bell Curve) looked like this. Bill Spencer Editor-In-Chief True Market Insiders When we look at the Curve today, we see this. The market is evenly distributed between Supply and Demand. That is, between sectors where bears have the upper hand… and sectors where bulls have the upper. Right now, all five major market averages are posting gains, with the small-cap tickers leading the way. Here’s a 1-year chart of the S&P 500. The red arrow points where the index gapped lower at the start of trading. I know that’s not easy to see, so here’s a three-month view. What’s worth noting here is that the price action from Monday and Tuesday happened on relatively heavy volume. I’ve highlighted the price candles and the volume bars for those two days. The green candle near the almost-vertical dashed line shows where on Wednesday the market opened higher than it did on Tuesday… but subsequently closed lower than it did on Tuesday. What’s more, volume was slightly lower as well. Then, over the next two days (Thursday and today) volume is lower still. So the bulls appear to have a slight edge in conviction over the bears. That said, the long-term trend for the market is clearly down. We did see a follow-through day after Monday’s advance, but now we’re seeing a second consecutive day of declines. Bottom line? The bear market is very much with us. And that jibes with what we’ve been saying, lo these many weeks and months. We’re in a midterm election year. Expect the market to sell off leading up to the election. Then, expect it to gun higher. That stance hasn’t changed. And we’re going to see rallies along the way as the market proceeds inevitably toward a long-term bottom. Those rallies are opportunities to profit on the upside. And they’re also occasions to practice robust risk-management. If you choose to enter a bullish trade, consider taking only a partial position. Use a tighter stop. And consider hedging against a decline your position with Put options. And speaking of (winning) positions, allow me to introduce a new feature of your Friday True Market Insider weekly wrap-up. We’re calling it… THE TRADE OF THE WEEK Every Friday we’ll spotlight a particular successful trade from one of the True Market Insider editors. Here is this week’s winner. Editor: Costas Bocelli Trade: Bullish bet on General Motors (GM) What happened: Costas uses a special screener, called the Dark Money Indicator, to spot highly unusual activity in the options markets. When his system spots some insider making an oversized bet on a stock, Costas passes that intel along to his readers. Last Thursday (September 29) Costas spotted a very large bet on GM. (I’ve blurred details of the trade, as they’re only available to paid Dark Money Indicator readers.) This five-day price chart for GM shows where the trade stands so far. Here’s another look at what happened to GM days after Costas “spied” on that insider. The green arrow shows where Costas entered the trade. Do yourself a favor and [look into having Costas send you your own Dark Money Indicator trades](. Thanks for reading, and enjoy your weekend! Bill Spencer Editor-in-Chief, True Market Insiders   You can [change your preferences here]( DISCLAIMER ©2022 by True Market Insiders, LLC, Protected by copyright laws of the United States and international treaties. This Newsletter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of: True Market Insiders, 7901 4th St. N STE 6113 St. Petersburg, FL 33702. The information contained herein has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs. 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