CAT continues to outperform the general market and shows no clear signs that any type of correction or retest of the lows has begun. The stock remained in the same trading range seen the past 5 weeks between 225.51 and 239.85, having traded this week between 227.02 and 238.22. Unlike the indexes that made multi-week lows this week, the stock actually generated a green weekly close. It did close in the middle of the week's trading range, meaning equal chances of going above last week's high or going below last week's low. Nonetheless, the sell signal given the previous week on the weekly chart was negated and unless the indexes break down this week (unlikely), the chart suggest that more of the same as seen the past 5 weeks will continue. The chart remains overall bullish as there is a bull flag formation in place, which if broken (a rally above 239.85) would offer an upside objective of 304.30. On the other side of the coin, a break below 225.05 should offer a drop down to $190 or even down to $180. The fundamentals do not suggest the former will occur but the chart remains tilted in favor of the bulls. Either way, it is likely this sideways trend will continue for the next 2 weeks and that some decision on direction will occur in January.

ENG generated another new 25-month weekly closing low and closed in the lower half of the week's trading range, suggesting further downside below last week's low at .80 will be seen this week. Nonetheless, the intraweek low made 4 weeks ago at .75 did not get broken, meaning that no bear statement of consequence was made this past week. With the holiday period ahead, it is unlikely that any statement will be made until the New Year begins. Short-term pivotal intraweek support is at .75 and to the upside at 1.02. It is highly likely the stock will trade between those two levels for the next 2 weeks.

LI generated a red close week and closed in the lower half of the week's trading range, suggesting further downside below last week's low at 18.96 will be seen this week. The bulls were unable to hold the weekly close support level at 20.94, having closed at 20.45. It does suggest the stock will head down to the previous high daily close at 18.94, from which the recent breakout occurred that generated the rally all the way up to the 24.41 level. That level of support is quite decent given that not only did it generate the breakout but was also a big support level in May (18.90) and from which a rally up above $40 occurred. Simply stated, it is not likely to be broken without some negative fundamental news being released. It should also be noted that the runaway gap is at 18.80 and that gap should also not be closed as it would mean the breakaway gap down at 17.62 would be targeted. The breakaway/runaway gap formation is supported by news (Chinese market rallying due a downgrading of the zero-Covid restrictions). There is a gap to the upside at 23.62 that does not have a reason to stay unclosed, meaning that is a potential upside target for the next 2 weeks. A break above 24.41 would open the door for a rally up to 25.91, which is where the 200-day MA is currently located. Nonetheless, a rally up to the line is not likely to happen (or be tried) until the New Year.

NEM generated another red close week and did close in the lower half of the week's trading range, suggesting further downside below last week's low at 45.25 will be seen this week. Nonetheless, there is short-term pivotal weekly close support at 45.13 (44.32 on a daily closing basis), which is unlikely to be broken at this time. Short-term pivotal daily close resistance is found at 47.13, which if broken, would give the bulls some additional ammunition. The stock closed on Friday at 46.14, which is in the middle of those two areas. The chart remains leaning clearly to the bulls for a rally up to 200-day MA, currently at 56.47. Nonetheless, neither a breakdown or a breakout is likely to be attempted until the New Year, meaning the stock is likely to trade between 45.00 and 47.00, or perhaps as high as 50.00 for the next 2 weeks.

PLNHF made a new 17-month intraweek and weekly closing low and closed on the low of the week, suggesting further downside below last weeks' low at 1.02 will be seen this week. There has been no negative news (in fact, the opposite as positive news has come out), meaning this breakdown is likely chart oriented due to the failure to rally to resistance a few weeks and then the recent breaks of support the last 2 weeks. There is a double bottom at .93/.94 that should hold up, in fact not even reached (on a weekly closing basis) as it would make it a triple bottom. As such, the probabilities do favor the 1.00 level holding up, given that it is a good psychological support and the fundamental picture definitely leans positive. Short-term pivotal daily close resistance is at 1.15, which if broken would likely cause strong short-covering to occur. I do not see the stock doing much for the next 2 week, with the stock probably trading between .97 and up to 1.12.

QQQ generated a negative reversal week, having gone above the previous week's high and then closing below the previous week's low and near the low of the week, suggesting further downside below last week's low at 272.61 will be seen this week. Intraweek support is found at 269.28 and on a daily closing basis at the $270 demilitarized zone, suggesting that area is the downside objective for this week but is also a level where consideration to covering the short positions should be given. The chart suggests that a bounce is likely to occur from that support level with a possible intraweek objective of 284.18/284.60, to be reached by the end of the year. The 200-week MA is currently at 278.82 and that will be a magnet to the upside if the support levels below hold up. A break above 284.60 would change the chart a bit for a short-term basis.

SHOP generated a 2nd red close week in a row and in the process generated a sell signal on the weekly closing chart, having closed below the most recent low weekly close at 36.59 (closed at 36.09) and near the low of the week, suggesting further downside below last week's low at 35.65 will be seen this week. The stock does show pivotal daily close support at 35.21, which if broken does show open air down to the 29.76-30.81 level. Minor intraweek resistance is found at 36.40 and then nothing until the $40 demilitarized zone is reached. The Retail Sales report last week is a fundamental negative for the stock suggesting the bears now likely have the edge and the stock might outperform the indexes to the downside this week. Consideration should be given to covering the short positions if the stock gets near the $30 level.

VET generated a positive reversal week, having made a new 5-month intraweek low but then closing green. Nonetheless, the green close was only by $.025 and the stock did close in the lower half of the week's trading range, suggesting further downside below last week's low at 16.94 will be seen this week. The stock does show decent intraweek support at 16.60 that is not likely to be broken this week given that Oil is expected to trade sideways to perhaps slightly higher for the next couple of weeks. If 16.60 is broken though, there is open air below down to the 200-week MA, currently at 13.18. To the upside, there is intraweek resistance at 18.23 that is likely to hold up for the next 2 weeks. Nonetheless, if broken, a rally back up to the $20 level is likely to occur. As such, the probabilities favor the stock trading mostly sideways for the next 2 weeks between 16.60 and 18.23 with a small possibility of trading as high as 20.00.

VNET generated a totally uneventful inside week with a 3rd green weekly close in a row and a close very slightly above the middle of the week's trading range, suggesting a slightly higher probability of going above last week's high at 5.36 than below last week's low at 4.94. Nonetheless, the action being seen suggests the stock will not do anything of any consequence for the rest of the year, meaning that it should be ignored until January as the traders await the outcome of the proposed merger at $8 a share. For now, the chart does not favor either side as it seems to be in a trading range between 4.50 and 6.00. Midterm pivotal resistance is at 6.43, which if broken would make the $8 level the objective.

ZLAB generated another red weekly close but no support levels were broken. The stock closed in the lower half of the week's trading range, suggesting further downside below last week's low at 31.52 will be seen this week. On a daily closing basis, support is found at 31.05. Daily close resistance is found at 35.18 and 38.56, with the latter being pivotal, given that the 200-day MA is currently at 37.07. The bulls have been attempting to break that line since September and having broken it once and tested it twice since then. The probabilities do favor the bulls, both chart-wise and fundamentally, but due to the likely lack of trading interest for the next two weeks, I would expect the stock to be in a trading range between $31 and $37 for the next 2 weeks. A weekly close below 29.70 or above 37.76 would be indicative.