Stick with what’s working

By Jani Ziedins | End of Day Analysis

Sep 12

Free After-Hours Analysis: 

The S&P 500 finished Monday nicely higher.

A midday step-back tried to unwind some of these gains, but rather than join in the selling, most owners shrugged and prices quickly bounced back near the intraday highs.

If last week’s rebound was built on a pile of sand, the lunchtime swoon was more than enough to trigger a larger wave of follow-on selling. But so far most owners are comfortable holding for higher prices, meaning there is some substance to these prices.

We’ve been waiting a while for the back half of September and now that it’s finally here, we can start taking the market’s price action more seriously. That’s because institutional money managers are back at work and getting ready for the final months of 2022.

While we shouldn’t expect a dramatic change in the market’s behavior overnight, we can put more faith in any of the signals it gives us. And so far, it seems like big money is fairly comfortable with prices at these levels since they haven’t hit the sell button yet.

Maybe this changes tomorrow or next week, but so far, things look pretty good.

Hold the bounce, lift stops, and see what happens. There isn’t much else to do here.

Hold with stops spread across the mid-4k’s. Momentum is still at our back and so far most owners are resisting the urge to sell.

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About the Author

Jani Ziedins (pronounced Ya-nee) is a full-time investor and financial analyst that has successfully traded stocks and options for nearly three decades. He has an undergraduate engineering degree from the Colorado School of Mines and two graduate business degrees from the University of Colorado Denver. His prior professional experience includes engineering at Fortune 500 companies, small business consulting, and managing investment real estate. He is now fortunate enough to trade full-time from home, affording him the luxury of spending extra time with his wife and two children.