Special Risk Capital Management LLC

So Close . . . October 2, 2020

Oct. 2, 2020 – On Thursday . . . we were Oh So Close to breaking out higher. Then came Friday with news that Trump got the Covid virus. Now I’ll admit that I did start to nibble on a few strong (i.e. tech based) ETF’s, but the volume doesn’t really confirm a strong price action. And so the wise thing to do is to take small positions (i.e. “scale in”) or just wait for confirmation.

Note that Volume Flow is light (green circle, must be some hesitation here) and Money Flow remains weak. I point to the near break out on Thursday (green arrow). I’d like to see at least two consecutive closes above 1130 and preferable on some increasing volume (buying). The world is not coming to an end so maybe we’ll see some follow through early next week.

The pie chart below shows the % number of stocks in the S&P 1500 Index and how they did last week. Overall pretty good; more green than red at least.

And the table below shows where the near term strength is by sector.

Technology was doing fairly well until Friday, so I’d watch that sector closely for signs of strength & recovery going forward. Not much more to say except we may (just may) be close to a breakout or falling back into a trading zone. There just doesn’t seem to be an appetite for stocks with the uncertainty of the virus and the looming election. We may just have to wait it out.

Oh Yes, one more thing: IF you’d like to see & hear an interview that I did with a web developer & ex-hedge fund manager . . it would be here: https://youtu.be/tuqbhiZXo5s on YouTube. 🙂

Take Care & Have a Good Week! ………….. Tom ……………..

Price chart by MetaStock; pie chart & table by http://www.HighGrowthStock.com. Used with permission.