Before open 12/16/2022

Risk off!

We have risk of for breakouts. SPY, SMH, SAP, X lost their 10 MA > 20 MA.

McClellan Summation index is below its 8 MA and we do not have earnings season.

Strong Pockets: China and Healthcare. Still playable, but I would reduce size here!

So, the screen for stock selection we use right now is:

So which stocks look interesting from here:

The white line is the 8 MA. The blue line is the 8 MA on the relative strength of the stock. I went through 1000s of breakouts and the result is: if price is between the two and the stocks comes from a major theme (right now China and or Healthcare) it is worth to put the stock on the list.

Look at Caba recently and you see what I mean:

The theme selection is very important. Be aware that there are themes that do not screen well fundamentally (for example biotech’s). We then switch fundamentals off!

In the moment where other themes are strong that screen well fundamentally, we will put on the fundamental screening criteria back on (that would be for example the case if Oil stuff would be strong).

The following stocks look interesting (will be around 30, not more in the future, everything else is not manageable).