Markets continue their pattern of decent strength on M-W and here we are Thursday, and heavy selling in growth stocks.
Whatever the excuse (War, Oil, Inflation 10yr Yields rising, etc), it doesn’t matter, selling is selling.
Tech was thrown overboard today:
XLK -3.1% New Low
XLC -2.4% New Low
SMH -4.6% Rejected at 50d
QQQ -2.4% New Lows
ARKK -3.6%
MAG 7 -3.3% is a train wreck and looks like it has completed a major top
Numerous Downside 3 Bar Breaks today: NBIS, SNDK, MU, AMAT among others. Typically the midpoint of the 3 Bar Break Bar will act as resistance on a rally attempt….if cleared, it shows strength.
All of this further reinforces RKi Exposure Levels the past 4 weeks has been very small at 0-5% invested. Some subscriber emails were wondering if we can start buying on Mon/Tues/Wed…….and I explained why we don’t engage until our market tools show us we can put our toes back in the water. Until then, Patience and Discipline.
In tomorrow’s GMU, I will outline pros/cons of pilot test buys in case you are more aggressive and can live with some potential stop outs.
Remember, as bad as things can look, we are still only 4 days away a Rally Attempt and potential FTD. I was taught many years ago that market Bottoms are not made by the Buyers;  Bottoms are made by the selling when are all the sellers are washed out. So we keep our Watchlist sharp with the highest RS names and we will be ready when the market turns. More in Friday GMU.
Trade Well
J
glad to be 100 % cash .