BOB LANG: Good morning, Action Alerts Plus members. It's Monday, September 26, 2022. Time for the rundown. Lots of stuff to cover as usual, so let's get going here.

So Friday was another tough day for the bulls, with volume accelerating, price action down all day long. And we are actually about flatline or slightly higher today from an oversold condition. We heard a couple of investment banks, of course, over the course of the last few days, especially Friday, adjusting the price targets on the S&P 500 lower. We have been talking for weeks about a move down towards those June lows being realistic and necessary. And safe to say, that was mostly accomplished on Friday, or it was real close to it.

This bear market still lives on. And with the S&P 500 lower by 200 points, just since after the Fed statement came out on Wednesday, hence less than three sessions for the index to fall over 8%. Bear market indeed. Oscillators very oversold right now, and there should be a whopper of a rally coming within days.

We're not going to time that of course. It'll be hard to play and just likely another spot for sellers to hit the exits. It's the last week of September, of course. Trading this week is going to be volatile and rocky. We expect to see plenty of movement up and down every single day this week.

Sentiment is pointing mostly towards the bearish side these days. You can check any poll that you want, the CNN Fear and Greed Index, the AAII, and some other polls as well too. And if you consider the polls and other things that I look at, such as the oscillators and volatility, put-call ratios as indicators to watch, these serve as great contrarian indicators in a bull market. However, this is where-- a point that where you have to be really be careful on because in a bull market, this is where dip buyers are prevalent and make their moves on extreme drops. However, in a bear market, such as this one that we're in right now, these readings will eventually lead to large bear market rallies, maybe just short lived and then take a swipe at it later on.

Case in point, just a few days ago, we did have a sharp four-day rally. And that was leading up into that CPI number that came out in the middle of September. That four-day rally was basically wiped out in one day. Basically, people were talking about an all-clear signal. After those four strong days, we rallied back up and got into an overbought reading.

But one day of gains-- one day of losses wiped out all those gains and then some, and markets went further south. It's good to use these indicators on a regular basis. However, we would not suggest you rely on them for trading or investing on a regular basis on any timeframe in a bear market.

Now, moving to the portfolio, this morning, we exited Nucor, a stock that we've had in the portfolio for quite some time and used those proceeds to add to our position in Pepsi and to some cash reserves as well. We've been watching Nucor for quite a while and have been cutting it slowly, and we did have it reduced down to a 2 rating. This was the time to exit due to a breakdown in price just a couple of days ago. We like this pullback in Pepsi, though, and are using some of these proceeds as a strategic move to add more and bulk up our shares in this big consumer name.

And then, finally, other names that we've been watching include AMD. That one, of course, broke down a little bit last week with the rest of the semiconductor names and video as well. We're looking at that one, perhaps to make a move. We're watching it very, very carefully.

And we have some other fresh names in the bullpen that may be considered. So take a look at those if you wish, and we'll be watching some of those names as well too. So that's going to be it. Have a great day everyone, and we'll see you back tomorrow.