Welcome, ladies and gentlemen. It’s Rob. Welcome to the Market Intelligence Report, which is for Monday, October 17th, 2022. I hope you’re having a great day. What a trading day it was. What a week it has been. Let’s go ahead and jump in. I want to take a look out into next week. I wanna look at where we finished up on the VIX. I want to jump into where we are in the S&P and what to be looking for and watching out for into this upcoming trading week.
So you can see the VIX. I now have a color coded. I’ve got three different colors on my screen. Red, green, yellow. Doesn’t mean go or bad or anything else. It just red, just tells me it’s high. Green is kind of normal, and if it’s yellow, it’s low. We haven’t seen yellow for a little bit now, but we are in a high VIX level at 31.99. We kind of flattened off today with a wide spread of wicks both up and down. But we kind of settled off finally at the end of the day and just said, “alright, whew! Thank goodness this week is over, baby.” Right? So that’s where we are with the VIX.
Now let’s go look at the S&P 500 and see what the heck is going on there. Um,, I know what it is. Uh, let’s see. All right, so what in the world happened? Well, we, if you go back Friday, 2, 3, 4, 5. So here’s Monday, right? The 10/10, Monday. Okay, so we had a continuation down from Thursday, Friday, Monday. We pushed into that 3584.90 level again. And that is where our fib level finished up, right? That is where our zero line is, right? And we took a bounce on Monday. Tuesday, what did we do? We chipped away at the ice, we chipped away at the ice, we broke it through a little bit. Wednesday, we closed just slightly below and Thursday, bam! We came crashing down through, ran right into that 3,500 level and we exploded off of that. And I heard so many people saying, “It’s a bottom. Buy buy buy buy!!! And I’m saying, “No, no, no, no. Don’t buy!” Only buy if you’re looking for a long term opportunity. Guys, that was a great gap down. Great opportunity for going long on certain stocks, if you’re planning on holding it. Warren Buffett model…if you’re buying for a day plan on holding for 10 years. If you’re willing to hold for a day, be willing to hold for 10 years, that’s what that was.
If you’re looking at a buying opportunity, I did start buying over the last week or two. Now on some of my stocks, I’ve got a bunch of naked puts out there on some other positions right now that I want to own, instead of buying them outright. I don’t know if we’re done going down. So I’ll keep selling puts, let them keep paying me huge premiums every week. And if they make me buy it, I was gonna buy it $4 or $5 higher anyway, so I’m okay with that, right? So Thursday, man, yeah, I said we rocked. We got into bearish neutral territory and heard all of the “yes and the ah, we’re gonna do it. This is the breakout! This is where we’re going through!!!” And I’m sitting there saying, “Oh my goodness gracious. When are they gonna learn?” And it’s not the breakout folks. That wasn’t it.
So what happens today? We gap up, Yes. Ah, yes. We’re going higher, we’re going higher. We get up near 3,700. We push right up. Actually, what was the very high today? 3712.00 with a 3711.01 level, right is our fin line. That’s our .236. Anybody remember what .236 stands for? HESITATION. The hesitation level. We smacked right into it and said, bye bye. And we came right back down. And where are we? Right back down at the zero line. Oh, wait a second. The zero line is 3584.90. We’re at 3583.07. So what did we do? We chipped away at the ice again. We opened it up for the bears. We saw a massive shift in direction. We were up over 3600, 3700 today, and we closed down below 3,600. So we’re more than a hundred point swing from high to low. Great move. Phenomenal move. Amazing move on the day. But don’t be fooled into believing that this is a bottom. I don’t believe we’re there. Technicals aren’t there? We haven’t seen the recovery signals yet. We haven’t seen the pain yet. We haven’t seen the pain.
Listen, unemployment is really good, Yes, but it went up this week. More people! Yeah, 9,000 more people applied for unemployment. Big deal. It’s nothing. It’s nothing, right? We need to see unemployment kick up. We need to see more of that fear, that capitulation. We need to see some things happening. You know, the war’s starting to end. Gas, gas deal. Getting figured out of how we’re actually gonna make sure we have enough energy without paying $4 and $5 a gallon. Again, today we’re headed to Costco tonight. I’m gonna see what their gas is over there. And we go, they’re usually the cheapest place I could find around. We’ll see what they’re selling it for, but I’m starting to see little bits of tipping up right now.
And OPEC made it very clear they are not waiting to, to cut back on production. They’re doing it now, right? So you’re gonna start to see that transition into the market very, very quickly, right? And oh, people said, “Well, we saw an overage, we had an excess of oil storage.” That’s not what you want. You want the economy rocking right now. You want things going great right now, and that’s not what’s happening, uh, in, in that grand scheme of things, right? So with that, there you have it, folks. Be very cautious next week if we break, look for that next hundred point level, which takes us down to that 3,500 level. If we break, and we will, I’m not saying it’s this week, but we will, if we break that 3,500 level, look for 3440 if we break, and we will look for that 3,400 and then ultimately the 3382.50.
So make it a profitable day and week. Stay focused on the quest of becoming a great trader. Keep crushing it and remember, you just one trade away. Take care of everybody. I will see you all at our next update. Bye for now.