Monday Update - Epic Trades - 10/3/2023

By David Prince

It's been quiet here.  The market has been tricky.  And I imagine there is some antsiness building for the next trade

It will come. Protecting capital is job number #1 at times like these. Even though the waiting can be tiresome, our patience will be rewarded.

We are getting closer. In the last 48 hours, I feel a bit more fear than I've seen recently.

The volatility index VIX has finally breached 20, which is good to see. It doesn't seem likely that we get out of this selloff without a whoosh or a little panic selling. Something to create a bit of urgency on the buy side

As we wait:

  • $SPY is approaching its 200-day moving average, $419 ish
  • $QQQ has a pivot low near $351, which would be an attractive buy area
  • $IWM at $162 and $XBI 62 seem like destiny
  • Yields are real competition to stocks
  • Big Cap Tech and the Magnificent 7 are one of the last strongholds

There will be plenty of opportunities for those who remain disciplined. They are coming.

We have non-farm payrolls on Friday morning.  And earnings season begins in two weeks.

More to come,