No. of Recommendations: 1
return inflation to target.
Technical Analysis: Rich Ross – “BUY the DIP”
While Wednesday’s -3% selloff was not ideal, we don’t view this as the beginning of a deeper correction or change in trend, given:
“The Strong” (Tech and Growth) remain strong.
“The Weak” (Cyclicals and Small Caps) have been weak for weeks – and Wednesday’s collapse marked the exclamation point to that move.
Most extreme oversold conditions since the COVID lows – Value, S&P Equal Weight.
Stocks still on support – during a powerful time of year.
Call outs:
VIX – The 74% spike in the VIX was consistent with panic seen at lows.
Bitcoin – The riskiest of assets remains composed trading above 101K.
NVDA – Buyer – Outperformed by 200bps in a tough tape, and remains a conviction Buy atop support with a 36 RSI.
Semis – Coiled for a breakout from 6 months of consolidation, sitting right on support at the 200ma. Buyer. 233 stop.
10-year – They have been sideways and trendless for 2 years, and we continue to believe that they will remain sideways and trendless, with next resistance at 4.70.
IWM – Most oversold all year and sitting on support at the 100 ma.
KRE – most oversold and on support (59).
XRT – has pulled back to support at the breakout at 80.
