There are currently less than 200 stocks in confirmed Stage 2 uptrends, so there's still work to do in establishing solid participation to fuel a sustainable new uptrend but keep in mind, the best stocks bottom before the indexes.

"Context is King" - In bull markets we can only be long or neutral, and in bear markets we can only be short or neutral. That may seem self-evident; it is not, and it is a lesson learned too late by far too many.

I'd suggest you make self-to-self comparison to measure progress.

As of end of September 2022. 

"in the multi-strategy and fixed-income categories, according to Peter Laurelli, global head of research at eVestment. The ten largest multi-strategy funds lost 2.1 percent year-to-date, significantly better than the entire group’s loss of 3.4 percent. The ten largest fixed-income funds lost an average of 1.5 percent in 2022"

"All life is an experiment. The more experiments you make the better."

"when the cops raid the brothel, even the piano player gets arrested"

"The market is the sum total of the wisdom and the ignorance of all of those who deal in it and we dare not argue with the market’s wisdom. If we learn nothing more than this we’ve learned indeed."

 

"Velocity begets more velocity."

During the bear markets of 2000-2003 and 2007-2008 the Fed was lowering rates. Now in this 2022 bear market the Fed is raising rates and that's the major difference that has the potential to create all sorts of unintended and unexpected consequences.

Historically speaking..........

"The weakest time of the year for the S&P 500 has been from September 6 to October 25."

Under most circumstances, the markets will be either readable or reliable.

"We registered blow off volume around the lows (1) then got some nice upside confirmation volume during the subsequent rally (2) however, better than 10:1 up vs. down volume came back into the market last week (3); an indication that institutions were using strength to sell into."

"During the 2000 bear market the NASDAQ rallied 40%, 28%, 41%, 50% and 36%." All of them nothing more than bear market rallies with very few stock working from breakouts.

Markets trying to rally but breadth pretty crummy. Been a while since we've seen that.

 to help you visualize

Another thought-provoking chart.

 

 

                                                                

If the economy avoids a recession, then the current decline is approaching the avrage for both time and price.

 

As ugly as the market has been, at this stage it's time to get off the indexes and focus on leading stocks. The best names ALWAYS bottom BEFORE the averages. Now is the time to START looking for names that will lead the next bull market which will for certain to follow this correction.