This Week in Episodic Pivots: October 15, 2023
Let's remain patient
The market is preparing for war. Friday’s action saw investors were looking to shore up their chaos hedges. We saw the Volatility Index (VIX) surge about 16% higher. Oil ripped 8% higher and gold rose over $60 an ounce or 3%.
These are large moves for those investment vehicles. Luckily nothing escalated this weekend. But tensions are running high and the situation could escalate quickly. That’s why everyone is putting on these kind of trades.
Our oil play, Highpeak Energy ( HPK 0.00%↑ ) was our best performer last week, gaining about 17%. And all the rest of our stocks hung in there.
But I do want to sell Adecoagro ( AGRO 0.00%↑ ) on Monday. I just don’t like the way the stock is performing. The price has pulled back below the 10 and 50-day moving averages. That’s a sign of weakness.
Our trade from last week failed to trigger. No one should have bought Nano X Imaging ( NNOX 0.00%↑ ) if they followed instructions. I’m torn on this one because I like the story. But I think the war in Israel should keep us out of this one. And they delayed their investor day presentation that was supposed to happen on Tuesday. That makes me wonder if something isn’t going as planned. So let’s move on from this.
This week, we’re going to hold off from entering any new positions. I sense we’ll have another volatile week. And I don’t want to enter any new positions and have them turn against use quickly.
However if the S&P 500 breaks back above its 50-day MA, that could be a sign that this market has another rally left in it. But I’m not hopeful after last week’s ugly rejection. So we’ll keep watching the charts and let you know if anything happens.
And that’s all for this week.
Happy Investing!