Absolutely & just as negative (bearish) divergences often get burned through in a bull trend, positive divergences often get burned through in a bear trend. However, sooner than later, especially as the market gets more & more oversold & key stocks & sectors (and the indexes) start falling to resistance, one of those divergent lows will be the one that proceeds a very swift & strong (and lucrative to trade) bear market rally so best to respect them & be ready to pivot if there is enough evidence in the charts to do so.

thanks Randy! please update us when you cover. I am ready to go long WMT, TGT and XRT for short term.

Sure, sometimes. That’s what insider information is all about. Trading on insider info has always been around & always will be but that doesn’t mean that all big rallies & drops that occur in advance of a big announcement are necessarily due to insider trading.

All I can say on SJM is that it has decent support coming up around 119-120 so if the major indices hold above last week’s lows, then one could go long SJM at or just above 120 with stops somewhat below & try to game a bear market rally.

There’s quite a bit going on in the retail stocks I’ve been dying to cover since I left but will do so this week. WMT hit & parked at my 120ish long-term (first) target on the weekly chart & COST getting close to my 1st target on the weekly around 388 with XRT almost 14% from my first (weekly chart) target around 53. As such, I suspect the sector will rally first (starting this week) & set up for the next big leg down in a few weeks to a few months, assuming that the market put in a near-term bottom on Friday. If not, XRT & COST will likely see those next targets very soon.

Long… unless we take out Friday’s lows with conviction. As of now, Friday’s marginal new low followed by an impulsive rally back above the previous two equal (double bottom) lows on both the $SPX & $NDX has all the makings of a bear trap.

As such, it’s simple: One can be partially or even fully/aggressively long here with either a hard stop or relatively tight staggered stops anywhere from just above to somewhat below Friday’s lows.

My expectation is for a rally of about 13% from Friday’s low so, let’s say, a long position on something like QQQ or /NQ here with a 3% or so stop provides around a 4:1 R/R.

Those still short looking for more downside might consider tightening up stops to protect profits at this point as I just can’t stay with the utmost confidence that the recent lows marked a near-term bottom or not. However, tomorrow will likely provide us with some additional clarity if so, especially if both QQQ & SPY close solidly back above their respective T2 targets on the weekly charts.

Shutting down for the night soon with dual stops on my /NQ position, both below Friday’s lows, & if both are hit (with similar dual-level stops on /RTY) then I’ll be flat the indexes & quite likely re-enter short in the a.m. or if I wake up overnight (still on Hawaii time).

In general, do the charts price in secret information. (All the people working on the case at FDA plus the employees working on the issue knew about this well in advance of a press release.

https://i.imgur.com/xEYeIJn.jpg