30Sep10:32 amEST

In Need of a Magic Boost

It remains to be seen whether Wall Street will adhere to its old adage to, "Sell Rosh Hashanah, Buy Yom Kippur," this year, something we fleshed out in more detail for Members over the weekend.

But with a modest bounce going this morning as I write this, the third quarter of trading may very well go out with a whimper today after seemingly endless choppy, uniquely headline-sensitive action. Case in point: China names with reasonably solid overall charts have been rendered essentially un-tradable from a swing perspective due to day-to-day wild gaps in both directions (e.g. NTES). 

Beyond some notable bright spots in September, such as housing, it is only natural to keep an eye on the bludgeoned growth stocks to see if they can stabilize and potentially set up for a rally to close the year out as we head into the fourth quarter tomorrow. It is early on in the session, still, but if a growth monster like MongoDB (below on MDB's daily chart, arrows point to mini-"hammer" bullish reversal so far today, pending the close) in software can close here or higher, in addition to names like COUP OKTA TTD TWLO, bulls can at least make a more colorable argument for stabilization provided that this morning's lows hold in the coming days and those names see some follow-through higher. Again, we need to at least see the close today and some further upside into October. 

However, bulls will need to start somewhere with them. And with the way those growth stocks got pounded the last few weeks they will take any boost they can get. 

Waiting for Things to Align ... A Gold Top? Maybe. Maybe Not...


This website is intended for educational purposes only. | © 2023 MarketChess.com | All Rights Reserved | Website design by Saco Design | Superpowered by Site Avenger

mobile site | full site