Market Volatility is Back, But I’m Buying 2 New Stocks.
February 8, 2026 - Update
Photo by Raychel Sanner on Unsplash
I am not spending too much time on macro this week. Credit availability is fine. That is the most important leading indicator for me.
The focus right now is on expectations. The appointment of the new Fed Chairman has brought some volatility to the markets. The Nasdaq dropped about 4.5% last week. It is down 6% from recent highs. That is a strong move.
Looking at sectors, here is the picture:
Energy, Staples, Materials, and Industrials are leading. Cyclicals and Technology have lagged over the last three months. This is not necessarily bearish, but Technology is definitely taking a break. The weakness in Cyclicals might reflect a weak consumer. As discussed before, the economy isn’t creating enough wealth for the middle and lower classes.
The last job openings report shows weak demand for new hires. As you can see in the chart below, it is at its lowest level in five years.
Inflation looks under control (we get fresh data next week). A better-than-expected number could open the door for a rate cut earlier than planned.
I remain bullish on the stock market for the mid-term. In the short term, anything can happen.
Reminder: Corrections are normal. Drops between 5% and 9% happen about three times a year on average.
INDEX: SPX Weekly
(Week ending Fri 6-Feb-2026)
1) Stage Call (The Big Picture) We are still in Stage 2 (advancing). Price is above a rising 30-week Moving Average (~6685) and 40-week Moving Average (~6514).
2) What Changed This Week The index did not break the trend, but it stalled near the highs. Momentum has cooled. The weekly MACD histogram is negative (~ -15.5) while the price holds near ~6930.
This is a common “breather” signal after a strong run.
It can be an early warning if it continues and price breaks support.
3) Key Resistance and Support
Resistance: ~7000 area (Psychological level + recent peak).
Support: ~6900 (10-week MA). This is the first “normal pullback” area.
Next Support: ~6800–6810 (20-week MA). This is a key decision zone.
4) Short-term Implications
Base Case: Sideways or choppy action while the market digests gains. Risk of a pullback toward ~6900.
Bull Case: Breakout and hold above ~7000. Momentum accelerates.
Risk Case: A decisive break under ~6800. This increases the odds of a deeper correction toward the 30-week MA (~6685).
Key Takeaways The trend is intact (Stage 2), but the market is tired near resistance. Momentum is weakening. Selectivity and patience matter more than aggression right now. Watch ~6900, then ~6800.
PORTFOLIOS: 10x MOMENTUM
High volatility last week triggered two stop-loss levels:
KRYS: Sold for a total return of about 48%.
STEP: Sold for a total return of about 0% (break-even).
My buy stop order for SNDK was not triggered. The stock kept moving higher without me.
I am left with just one position: WT. It is currently up over 10% (cumulative of two batches). I have updated my Stop Loss for WT to $14.70.
What am I doing this week? I have significant cash available in the account (currently $28,500). I have two new ideas I like.
