Market Scoring – Wednesday 21st September until 9:39 p.m
On July 4, 2022, we declared the bear market over… and provided 4 tips:
1. Bank of America (BAC) – $31.56……. It went up to $36.50 by August 16th… within 6 weeks.
2. Walt Disney (DIS-) $96.13……… It rose to $126.00 by Aug 16… within 6 weeks.
3. PayPal Holdings (PYPL) – $71.40……It surged to $102 by Aug. 16…in 6 weeks.
4. Amazon.com (AMZN)- $109.56……. It rose to $146 by August 16th… within 6 weeks.
Now we think we may have called the bottom of the bear market rally and not the bottom of the bear market… unfortunately.
In our market letter of September 19th we advised our clients that on Friday we “sold all positions” and that the major markets do not hold support levels and that we would sell all positions and if the DOW closed below 30,500…whatever the case was on 21.09.
We showed the impressive chart of FedEx (FDX) 153.25, which fell 45 points on Friday as it released disappointing numbers and forecast for the economy. And we’ve put together a long list of high-quality, high-P/E, high-value stocks, including:
Dollar General (DG) 243.79
Costco (cost) 514.14
Insulate Corp (PODD) 255.00
Live Nation Entertainment (LYV) 87.08
That’s what we said we’re going to sell because if they’re not doing their numbers either, then they’re also in the grips of a big pullback.
As you can see from their chart, they too have started to decline. “Extreme caution” and “wealth protection” should be paramount in this dangerous market.
Joe Cotton has won three National Stock Picking Contests with an annual winning percentage of over 96%. Their winner of the 2020 Wall Street Best Stock competition was Inovio Pharmaceuticals (symbol INO) with a 1-year return of 742%.
This article is not investment advice and should not be construed as investment advice in any way. For investment advice, contact a registered investment advisor or certified financial planner. Joe Cotton’s website is www.cottonstocks.net. Joseph W. Cotton of NKY is the Editor of the Technical Speaking of Cotton market newspaper. He is a graduate of Xavier University, a former banking manager and credit analyst and a former registered investment representative of Fidelity Investments. Contact him at [email protected]