“Waiting it out” is an interesting phenomenon in a bull market, as the stigma of sitting in cash is often seen as a worse investing/trading sin than suffering large drawdowns during corrective periods. I suppose if I actually cared about stigmas to the point of letting it affect my decisions, then my trading style would be different. But, in the end, speculation and gambling are inherently individual sports–You do what works best for you and pay no mind to just about anything else.

I am not inclined to chase much of anything higher here, despite the potential for a further melt-up next week. In my view, this type of price action smacks of the final stanza for a mature bull.

The biotechs largely have kept me out of trouble on the short side, with their inability to reverse lower in recent weeks being my “tell” to not become a gunslinger with shorts, just yet. Today, however, biotechs are lagging a bit.

More importantly, though, the monthly chart for the biotech sector ETF is going out for the month of October printing a massive candlestick after a very steep uptrend. Typically, this does not bode well going forward the next several months, as the wild price swings amounts to violent indecision with bear slowly creeping back into the market picture. Then again, this market has been atypical and we know anything is capable of happening.

I will run through the rest of the market with an objective eye, as well as talking through actionable trading ideas and price levels to watch, in my Weekly Strategy Session this weekend.

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Courtesy of The PPT algorithm, here are the most current top five readings from my “12631 RELATIVE STRENGTH” custom-made screen, identifying which stocks are exuding some of the best performances to the market at-large at any given moment.

I look for stocks whose Daily PPT Hybrid Score surges, while the Weekly Hybrid has been negative over the past week. This can often yield stocks which are emerging from consolidations.

Members can click here to view and save the screen.

Sorted for at least 500,000 shares of daily average volume to ensure liquidity.

Please click on image to enlarge.

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A good deal of my long ideas on this blog of late have been focused on the casual dining/fast food space, as they have outperformed on many levels this month during the wild broad market price swings.

That could easily be due to lower oil prices and thus some more money, theoretically, in the pockets of consumers.

But the charts speak for themselves, namely: BKW FRGI JACK SONC as some of the best in the group.

And now even laggards like RRGB are perking up (earnings November 4th, though), meaning others in the sector are worth stalking.

Still, it is worth looking at the space this weekend. Which is what I will do in my Weekly Strategy Session in more depth.

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Over the last three weekends, I presented my Weekly Strategy Session in video format.

Here is the full Session from last Sunday.

Please click here for more details about trying out the service. Note that 12631 members receive the Strategy Session each weekend at no additional cost.

Direct Vimeo Link Click Here