"Special Edition"

Ever study science? What’s the 3rd Law of Universal Gravitation? According to Sir Isaac Newton it’s “What ever goes up must come back down” Stocks are doing that today and in a big way. Not all hope is lost however, not even close. Currently we have multiple stocks that we here at investingwithfaith.com have been talking about lately that are holding their own. And others that are seeking support at these levels.

This is one of those times that it pays incredibly handsomely to be a options trader. You can day trade and still long term invest, many do. All traders can invest, especially options traders, but not all investors can trade. It’s that old saying, “If just anybody could then everybody would”

Why do I share that today? Because when we go to the charts we see the 20 EMA being tested on a laundry list of stocks. My watch list just grew by leaps and bounds. The EMA and The SMA are not the same. It’s not only that the 20 is less than the 50 or the 200 SMA’s, it’s that the 20 EMA means “Exponential” and not “Simple” EMA moves faster than SMA…… Much faster…

Moving averages do us no good in sideways trends, they simply “oscillate” They are not crystal ball methods and hold no guarantees, they do however give us what is known as “recognized” What that means is if a stock starts a new trend, up or down, then bounces off of the moving average ( lets say the 20 EMA in this case ) repeatedly and leaves the other moving averages alone, that then becomes the “recognized moving average” Right now that is very useful.

When you look at charts it’s always a good idea to look at multiple time frames. Daily, Weekly and if you are going back 10, 15 or even 20 years then the Monthly.

If a stock is down 3% on the day but up 4% on the week “when everything else is in the tank”, that’s a stock to consider... A couple of those that we have been mentioning here as of late are GE which is up 3% on the week and IJR which is up over 1% on the week. TSLA is down 9% on the week, NVDA 3%. Or in those cases like DHI that are down 3% on the week, but still up 21% on the month. Again, not all hope is lost.

This chart of SPY ( S+P 500 ETF ) is a one year chart using daily bars. Notice how price is sitting right at the 50 SMA today. Since it’s current leg of this uptrend began back in Nov of 2023 it’s only broken the 50 SMA once and that was back in April of this year. We don’t “bet the farm” on these movements, it could easily continue south, what we do however is use them as a gauge since it’s actual “Price Action” and not just some “story” we read. I’ve not ever seen a story yet that beat actual price action.

In conclusion do your own due diligence. What I am sharing today is a small portion of what professional traders and investors do when others fall behind.

Invest wisely, live charitably and be well

Brother Bill