Sentiment and Divergences are Pointing Up
October 19, 2022
Knox Ridley
Portfolio Manager
Weekly Stock Market Levels - 10/18/22
Markets do not top together, nor do they bottom together. It’s critical to find the leading markets for clues on what’s about to unfold. We saw this in 2021 with global markets all topping throughout the year. Today, we are seeing them bottom one after the other.
We’re also seeing this pattern with various risk-on markets. Transports, high beta, biotech, and small caps, all made higher lows as the broad market made one more low. These assets tend to lead us down, which we were seeing in 2021, but they also will lead us up, which seems to be playing out now.
This week, we will look at these patterns, as well as define the current price range for the broad market. Divergences can provide an early warning signal, but unless the market breaks out of key resistance levels, we do not have confirmation of the trend change underway. I detail this for you more below and also feel free to check out my weekly webinars on YouTube where I discuss broad market levels.
10/18 Broad Market Levels Timestamps
00:00 - Stock Market Intro: The Gap Up from the August Downtrend
03:20 - The Price Range That Really Matters
06:00 - Divergences in the Dow Jones Transports, High Beta Stocks, and Financials
08:18 - Divergences and International Markets (German, Chinese, and Japanese Markets)
12:03 - Get more technical analysis. Sign Up for Free Stock Analysis
Get Critical Weekly Stock Market Analysis during Stock Market Crashes
On the I/O Fund premium site, we provide weekly webinars that discuss what the I/O Fund is buying and selling. We also have a proprietary hedging signal that we monitor in real-time. Following the analysis, we provided for free on YouTube last month “This is Still a Warning Sign” and also in this article “Why the Next Two Weeks Could Determine 2022” we hedged going into the CPI number for a nice gain in a tough market and have had a hedge in place most of September
To watch more stock market analysis videos, follow me on YouTube here or sign up for the I/O Fund free newsletter to be notified when I publish the next weekly webinar.
Sign Up for the Next Premium Webinar where we continue to discuss Stock Market Bounces
About I/O Fund Portfolio Manager 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.
To get more free stock analysis on fundamentals and technicals, sign up for I/O Fund's free newsletter with gains of up to 403% - Click here.
Subscribe to Free Newsletter
About I/O Fund Premium Stock Investing Services
Premium Members currently enjoy all 7 Premium benefits below.
- Premium library of institutional-level research and analysis, including fundamental stock analysis and advanced market signals on technicals and macro analysis.
- Weekly Webinars on advanced market signals and broad market, plus quarterly portfolio reviews on Long-Term Buy and Hold tech stocks.
- Technical Analysis on stocks and Broad Markets with charts on all major US markets, analysis of inflation and growth, as well as 60 global markets to help us focus on risk/reward for entries and position our portfolio based on the macro-environment.
- An Active Forum made up of a community of like-minded investors with robust conversations including both fundamental and tech product analysis.
- A completely Transparent Portfolio made up of long-term buy and hold positions, crypto, and Long/Short Momentum positions.
- Trade Alerts are sent directly to your phone via SMS and email.
- NEW! Automated Hedge with advanced signals to help spot approaching risk in the markets, with a 67% win rate going back to 2003 with only 40 signals triggered.
Gains of up to 2,880% from our Free Newsletter.
Here are sample stock gains from the I/O Fund’s newsletter --- produced weekly and all for free!
2,880% on Nvidia
750% on Bitcoin
*as of Nov 20, 2024
Our newsletter provides an edge in the world’s most valuable industry – technology. Due to the enormous gains from this particular industry, we think it’s essential that every stock investor have a credible source who specializes in tech. Subscribe for Free Weekly Analysis on the Best Tech Stocks.
If you are a more serious investor, we have a premium service that offers lower entries and real-time trade alerts. Sample returns on the premium site include 4,490% on Nvidia, 900% on Chainlink, and 1,120% on Bitcoin. The I/O Fund is audited annually to prove it’s one of the best-performing Funds on the market, with returns that beat Wall Street funds.
Get a bonus for subscription!
Subscribe to our free weekly stock
analysis and receive the "AI Stock: 5
Things Nobody is Telling you" brochure
for free.
More To Explore
Newsletter
AI Spending To Exceed A Quarter Trillion Next Year
Big Tech’s AI spending continues to accelerate at a blistering pace, with the four giants well on track to spend upwards of a quarter trillion dollars predominantly towards AI infrastructure next year
Palantir Stock: How High Is Too High?
Palantir proved again in Q3 that it’s undeniably one of the stronger AI software stocks in the market outside of the cloud hyperscalers. The company reported visible AI-driven growth and persisting bu
Bitcoin Bull Market Intact as Risk Increases
In December 2022, we boldly stated that “Bitcoin is a buy” when it was trading around $17,000. We were positioning for a new bull cycle and projected a target between $75,000 - $132,000. Despite Bitco
Tesla Stock: Margins Bounce Back For AI-Leader
Tesla is arguably one of the most advanced AI companies in the world, yet its stock is dictated by margins. Over the past three years, Tesla’s average gross profit per vehicle has declined by 60%, fal
This Stock Is Crushing Salesforce, MongoDB And Snowflake In AI Revenue
In this article, I break down how Palantir’s AIP is putting it a step above peer Salesforce, MongoDB and Snowflake with visible AI growth, and its undeniable ‘secret sauce’.
Nvidia, Mag 7 Flash Warning Signs For Stocks
In this report, my team will address the risks brewing in the market. The strange behavior in the bond market could be signaling that the FOMC has made a policy error. This coupled with key tech stock
Why the I/O Fund is Not Buying Nvidia Right Now: Video Interview
In an interview with Darius Dale, Beth Kindig stated: “We ultimately think you can get Nvidia lower than where it is trading now. We are likely to take gains between $120 and $150 based on technical l
Cybersecurity Stocks Seeing Early AI Gains
Below, I look at the demand environment for leading cybersecurity stocks CrowdStrike, Zscaler, Palo Alto, and Fortinet, and which ones have key metrics hinting toward underlying strength.
4 Things Investors Must Know About AI
We’re still in the early innings of AI, but the pace of transformation that AI is driving is unlike any other technology seen before, and that was evident at Communacopia. Below, I dig in to the four
AI PCs Have Arrived: Shipments Rising, Competition Heating Up
Chipmakers Qualcomm, Intel and AMD are working to bring AI-capable PCs to the “mainstream”, delivering powerful neural processing units to PCs for on-computer AI operations. AI PCs are not only a cons
