Green Again... for Now...

The S&P 500 breaks above its 20-day moving average, and the number of stocks breaking down collapses. Once again, use caution, as the purpose of a market is to sell...

Good morning:

The number of stocks in breakout mode has surpassed the number in breakdown mode. We’re confirmed again by a reversal on the Magnificient Seven ETF (MAGS), and the 15% pop today on the Bank of Montreal MicroSectors FANG Index 3X Leveraged ETN Exp 8 Jan 2038 (FNGA).

For now… we’re green. We’ve got 10 stocks in weekly breakout in Align Technology (ALGN), Amphenol (APH), Discover (DFS), Equifax (EFX), Fidelity (FIS), First Solar (FSLR), Idexx Labs (IDXX), Netflix (NFLX), Palantir (PLTR), and Ulta (ULTA).

On the downside - Global Payments (GPN), Enphase (ENPH) and a few others.

I can't say that this is a bottom. We’ve seen big squeezes in the past - and I’m reluctantly trading MAGS and biotech stocks (which are squeezing).

Scott Bessent has implied that there will be de-escalation in the trade war. But the damage has been done. Be aware of squeezes for now…

Next time we do go red, be greedy to the downside.

And stay positive,

Garrett Baldwin