Home » Path of Least Resistance Still Lower

Path of Least Resistance Still Lower

Published October 21, 2022

The market has been especially volatile since the release of the latest consumer price index (CPI) number last week.

The S&P 500 and Nasdaq 100 both hit new 52-week lows last Thursday immediately after the announcement, only to rally into the end of the day.

And once again, I heard many folks proclaiming that the bottom is in for this market.

However, it doesn’t take a rocket scientist to see that the path of least resistance is still to the downside…

Don’t Fight the Trend

In a market like this, you don’t want to make things harder than they have to be…

You see, the S&P 500 just made a new two-year low last Thursday following the release of the CPI report.

Sure, the market had a nice intraday reversal, but it has barely recovered any of its latest downside move.

***Daily Chart of **S&P 500 Index**— Source: TradingView***

You can also see in the chart below that the market continues to make lower highs and lower lows, which is a classic sign of a bear market…

The index is also below its down trending 21-day exponential moving average (EMA) as well as its down trending 50- and 200-day moving averages…

2015-2016 *Daily Chart of SPDR S&P 500 ETF Trust (SPY)— Source: TradingView*

So far, we just have not seen a serious rally in the market that I can get behind.

Stick to the Plan

I’m not going to try to time the low in the market. I understand that I’m not going to buy the low tick or sell the high tick.

Instead, I am sticking to my time-tested game plan…

I will simply look to buy stocks in an up trending market and short stocks in a down trending market.

I’ll happily sit out during the first 5%-10% of the next rally to make sure the market is in a confirmed up trend before I buy.

But right now, with what I’m seeing, I am looking for short opportunities on any signs of strength.

Insiders Lead the Way

Now, when the next bull market gets under way, one thing I’ll be looking for is heavy insider buying by corporate insiders who know the real worth of their companies.

Consider this… When corporate insiders like CEOs, CFOs, executives and board members put down their own hard-earned money to buy shares of their own companies, it’s a huge vote of confidence.

After all, these folks have a footing of knowledge about their companies that Main Street investors simply do not.

I will be talking more about how I use stocks and options to profit from corporate insider activity in my LIVE presentation TODAY at 10 a.m. ET.

It’s absolutely free to attend, so I really hope you’ll check it out.

I’ll cover my strategy for trading alongside corporate insiders and generating potentially massive gains with less risk.

Just click here to register for this special Insider Effect LIVE session now!

Embrace the surge,

Ross Givens
Editor, Stock Surge Daily

Stocks within Article - SPX

alpha stocks, Market, Moving Averages, Stock Charts, Stock Market, stocks, Stocks to watch, Surge Stock Indicators, triangle

Even Bill Gates himself has said that generative AI has “peaked” and that the next version of ChatGPT won’t be much better than the current version.

So where will the next wave of AI innovation – and profits – come from?

Ross Givens

I bought my first stock when I was 12 years old. It was Microsoft. I’ve been a registered financial advisor. I’ve worked as a stock broker. I ran a managed fund. I was a Vice President at JP Morgan with Series 7, Series 66 and Series 3 securities licenses. I’ve been featured on Fox Business, CNBC, Bloomberg, and a bunch of other networks. The only thing I enjoy more than making money, is helping YOU make money.

STOCK SURGE DAILY

With Ross Givens

Looking for an edge? Ross has the inside scoop on top analysis that will help grow your portfolio.. Receive a new stock opportunity every day and get ready to see your investment SURGE!

Tech stocks are rallying – and Ross Givens’ #1 Tech Stock of the Decade has been making BIG moves you don’t want to miss.

Recent Posts

Réjean Roberge

November 28, 2023

I'm a new member of 'Insider Effect' and sent a support email and was responded to within minutes. It starts very well.

Philippe Rocher

I'm happy I recently opted in to the Ross Givens's Trading Club at Traders Agency (at the best and fairest offer I could possibly get). I'm new to trading U.S. stocks and options on a regular basis but it doesn't matter, Ross does all of the hard work for me while I'm trading at my own pace (he knows how to trade successfully most of the time and I know that I won't win every trade. Fair enough). He and his great team share a lot of their trading experience in live sessions. Great job. Thanks a lot!

CB Tudor

November 20, 2023

Excellent, very educative and honest service! Worth every penny and more.

Jay Herpick

November 11, 2023

I've found your buying of stocks and options very helpfull. Just wish I had found you folks five years ago. Your friend, Jay H

Ned Ewing

November 6, 2023

I've been working with Ross Givens and have learned a lot. Support has been very helpful and on top of response times. :)

donald macdonald

October 23, 2023

Great session! Ross explains everything well!

Jim Bowen

October 10, 2023

I started with Ross Givens and Trader's Agency GOLD in September of this year and have had some significant success on all but one of the trades he suggested. I have actually made 157% in profits over what I paid to join Traders Agency within my first 30 days. I am no stock expert and I want to know more about how to invest in the market. Ross's videos and strategy sessions are very insightful, and you can chat during the sessions to get his feedback. He's got all the tools at his disposal and has set up some good algorithms in order to help one understand the chaos and fundamentals to watch for in order to make a good investing decision. I have had other investment "helpers" that never yielded what I have within such a limited amount of time. I think Ross, and his team, is the "Real Deal"

Andrew O'Boyle

September 20, 2023

I have been a member of Traders Agency for 3 months. Ross is the real deal! I could not be happier with my results! Thank you Ross and the Traders Agency Team! I found my passion :)

Philip McElroy

September 14, 2023

World Class customer service and I would am really qualified to make this statement.