Trust nothing...

Confirm everything. Sector Focus: [Buy this Stock ASAP!]( Wall Street Veteran has picked the most profitable stocks in the market. He bought Amazon in 1998... Tesla in 2013... And Qualcomm in 1999... And has picked recent winners like these: And for a limited time... he is revealing his [#1 Stock for 2023.]( Weekly Market Update Today is October 20, 2023 Dear reader, Hello and Happy Friday. Here’s an image calculated to strike fear into the hearts of investors. It shows the performance of the major averages this week. This, after a week where we saw strength beginning to return to the market. In the images below, red boxes are sectors that the bears control. We went from a picture (on October 3) where the bears controlled every single market sector... To one where the bulls had clawed back control of nine sectors. Investors have come to expect this kind of “will-it-or-won’t-it” behavior from the market this year. We’re all asking: “Where’s the long-term bottom?” And many of us are uncomfortable with tentative answers. But a market bottom is a process, not an event. Of course, there will always be that one particular day we can point to and say: “THIS was the bottom. This was the day the market got as low as it was going to go before heading higher.” Last year, that day came on October 13th. In fact, the Thinkorswim platform even labels the low for you. In the correction of 2018, the low came, like a tardy Santa, on December 26. Trouble is, that day is VERY easy to spot in hindsight. And it’s always a mistake to “predict” when it will arrive. This year, S&P watchers thought they had spotted the tell-tale sign of a market low. The smoking gun was something called a “bullish engulfing candle.” Most chartists use candlestick charts, which have a “body” and two “wicks” – one at the top and one at the bottom. In the chart below, you can see the purple arrow pointing to the green engulfing candle that occurred on October 6. The market did indeed rise for three days after. But there was a problem – no bullish confirmation, so the validity of that up-move was in doubt. You gauge validity, we use trading volume. The S&P (SPX) is an index, and can’t be traded directly. Hence, no volume is shown underneath the price. To see volume, we look at the SPDR S&P 500 ETF Trust (SPY). This is a tradable ETF, and does depict trading volume in a panel underneath price (highlighted, below). Notice how when the volume bars do poke above the green line (showing average volume) the bars are red. Those are down days. Volume is higher when the market is falling. That engulfing candle was a poor omen. (Again, this is crashingly obvious after the fact.) The lesson here? Wait for confirmation of EVERYTHING. Assume nothing. Never think the market owes you anything. More likely than not the bottoming process has a ways to go. If you’re going to hedge – do it. But do not overdo it. The bottom is coming, and it won’t come like Christmas – predictably and on schedule. And when it does, the market could pop higher like the little man in the jack-in-the-box. Have a great weekend, and I’ll see you next week. Bill Spencer Editor-in-Chief, True Market Insiders Must See: Read Next - [Insiders trading ahead of Congressional decisions and billion dollar acquisitions?]( One secret automated algorithm, used by traders to detect insiders trading ahead of spike is stock prices, generated: - 5x gains (60 days) when Microsoft Acquired Activision - 4x gains (3 weeks) when The Chips & Science Act passed into law - 4x gains (15 days) when RioTinto Acquired Turquoise Hill - 11x gains (18 days) when Inflation Reduction Act passed into law One trader used the algorithm to show max-gains of 151% on his average weekly trade (average holding time: 31 days). [Here’s how he’s doing it >>]( DISCLAIMER ©2023 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 MarketInsiders, 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. Accordingly, investors should not act on any recommendation (express or implied) or information in this material without obtaining specific advice from their financial advisors and should not rely on information herein as the primary basis for their investment decisions. 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