HGSI Doc Top Down Review 9.19.2021

Previously published on the HGSI Community Forum. For earlier access to Dr. Scotts Top Down Review, please register at HGSI Community Forum.

Welcome to this Week’s Review

Special welcome to my new friends whom I met at the SF Joint IBD Meetup Group.

We had some great speakers, and I learned plenty to help my trading.  It was great listening to CANSLIM legends, Lee Tanner, Mike Scott, and others.  I WILL KEEP THIS SHORT because I am about to head to the airport for my redeye home.

The market pundits are very bearish, yet my CANSLIM Growth Stock portfolio made money this past week.  Are markets less Bearish than the news flow, or perhaps we see more violent rotations?  Maybe this time, we benefit as the rotation appears into small-cap growth.

Time will tell, but you can argue both sides.

For the Bears, we are overdue a correction, seasonality is horrible, the Presidential Cycle is bearish, and we have broken down below significant MA support and regression channels.

For the Bulls, we are also at an opportune time for a bounce, and despite the negativity, we are just a 2-3% for the most part within all-time highs.  Looking at the regression channels and moving averages, we are near areas that have provided support in the recent past.

So, this week, I enter with more cash, fewer positions, and ready to ponce long or short.  Since my main job, and yours, is to protect your capital, I have some hedges for insurance purposes.

Join me on my Top-Down Review as we look forward to a week that not only has the issue above but also has a 2 Day FED meeting, a conference call after the FED announcement, and a Friday Chairman Powell speech.  Let the volatility roll.  I do review my long watch list.  Keep in mind that I will not have orders entered until the market is open as I think there is too much risk, both ways.  My watch list is not a BUY list.  It Is a list I start to follow on Monday and add to it the rest of the week.  Reviewing it gives you a flavor of how I look at the markets.  It is not investment advice.

Remember, this is education only.  My goal is to help you BECOME YOUR OWN GURU.