Blogs -Broad Market Analysis: The Bear Market Correction by Knox Ridley

Broad Market Analysis: The Bear Market Correction by Knox Ridley


July 18, 2022

author

Knox Ridley

Portfolio Manager

Knox Ridley covers the bear market correction in this week’s Premium Stock Market Webinar. He discusses his technical analysis of six premium portfolio stock positions that only paid subscribers can access. Watch this clip taken from the 1-hour premium stock technical analysis where Knox covers broad market trends from the S&P 500 Index and upcoming dates to watch out for too.


July 15, 2022 - I/O Fund’s Broad Market Overview “The Bear Market Correction” 

•                  Stock Market Forecasting using Elliott Waves 

•                  How Semiconductor Stocks are Trending in Bear Market

•                  Summary of Broad Market Signals

00:00 - Start of the Video

00:40 - Analyzing the Bear Marke

04:10 - The Trend Finder

05:00 - Semiconductors and the S&P 500

06:35 - Apple

07:18 - July 20th to August 3rd

09:32 - Macro Pictures

11:17 - RSI Resistance

11:54 - The US Dollar

Stock Market Forecasting using Elliott Waves

Corrections on all degrees unfold into a known pattern. More times than not, it is a 3-wave pattern:

  1. A wave down
  2. B wave that fails to make new highs
  3. C wave down to new lows

This move is also symmetrical. So far we have a complete corrective structure in place. We can make one lower, but it will likely be on less volume and less momentum than previous moves down.


We’re Approaching a Major Inflection Point

Starting July 20th, 2022 – August 03, 2022, we will approach a major inflection point. This is the most important cycle in play since 2018. It showed up at every major top since 2018, and it’s showing up again next week.

“This is the most important cycle in play since 2018” -Knox Ridley, I/O Fund Portfolio Manager


Semiconductor Stocks - New Low in a Bear Market

"Semiconductor stocks hit a new low” – Knox Ridley, I/O Fund Portfolio Manager

Semiconductors have been leading each move in this bear market. They made a new low while the broad market has not. This suggests that semis may be bottoming before the broad market, and we could see further weakness going into next week and the week after.

 

This Week’s Broad Market Signals to Look Out For

SPX Indicators

  • If SPX can break above 3880, it will signal that a low is in place, and we will remove our hedge accordingly.
  • Rates and USD are putting pressure on equities, and they appear to be very close to a reversal. This will likely coincide with some type of bottom in equities.

To access this week’s broad market technical analysis where Knox covers 6 additional growth tech stocks, sign up for Premium to watch the full webinar replay instantly.



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About Knox Ridley

Knox Ridley began consulting on portfolios in 2007 and is an experienced growth investor in both bull and bear markets, which is hard to find these days. As the portfolio manager of the I/O Fund, he beat the top-performing funds on Wall Street in both 2020 and in 2021. His real-time trade notifications to premium subscribers have garnered 27 entries with over 100% gains in the last two years. Knox began his career as an ETF wholesaler in 2007 before becoming a portfolio consultant for large RIAs, FAs, and Institutional accounts. He is very keen on macro trends and is trained in Fibonacci Trading, Elliott Wave theory, as well as Gann Cycles. He also uses classical technical analysis to manage risk and identify great risk/reward setups. Knox is known for increasing and decreasing allocations for record-breaking returns.

Please note: The I/O Fund conducts research and draws conclusions for the Fund’s positions. We then share that information with our readers. This is not a guarantee of a stock’s performance. Please consult your personal financial advisor before buying any stock in the companies mentioned in this analysis.

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