Market Condition: Strong Gap Down, Correction

Commentary: The failure in breakouts we saw last week signalled this but now we’re selling off across the board. This is a great thing. Hopefully it’s quick and painful but there are signs that it could be a longer duration issue. Nobody really knows.

I expect some sort of short term market bounce today. Lot’s of names oversold and harsh selling. In times like this the market is highly correlated. There is very little point trying to trade individual names or trade at all. If looking for short term bounce the likely SOXL or TQQQ is your easiest vehicle. Tactical and highly skilled traders do well in these markets. Everyone else with a simple trend following strategy gets smashed. Keep that in mind.

I expect more downside from here and many charts have now been smashed. It is best to hunker down here rather than forcing anything. In Correction/Bear markets the swings can be truly violent. Don’t short into the hole and don’t get too attached to longs.

OKTA - Earnings Catalyst - 27th August 2026 - 34% Remaining

MRNA - Power Play - 17th September 2026 - 49% Remaining

DELL - Earnings Catalyst - 14th October 2026 - 20EMA Close Below

PENG - Earnings Catalyst - 14th October 2026 - Stopped Out

META - PR Catalyst - 14th October 2026 - Stopped Out

Thursday October 15 2026

8:30 AM - Retail Sales MoM (Sep) (Previous: 1.3%, Consensus: 0.3%)

8:30 AM - Core PPI MoM (Sep) (Previous: 0.2%, Consensus: 0.3%)

8:30 AM - Initial Jobless Claims (Oct/10) (Previous: 198 K, Consensus: 200 K)

8:30 AM - Retail Sales Ex Autos MoM (Sep) (Previous: 1.4%, Consensus: 0.5%)

8:30 AM - Retail Sales Ex Gas/Autos MoM (Sep) (Previous: 1.1%, Consensus: 0.2%)

8:30 AM - Producer Price Index MoM (Sep) (Previous: 0.5%, Consensus: 0.5%)

8:30 AM - NY Empire State Manufacturing Index (Oct) (Previous: 7.6, Consensus: 10.3)

8:30 AM - Retail Sales YoY (Sep) (Previous: 6%, Consensus: 5.2%)

8:30 AM - Continuing Jobless Claims (Oct/03) (Previous: 1,714 K, Consensus: 1,710 K)

8:30 AM - Jobless Claims 4-Week Average (Oct/10) (Previous: 198.25 K, Consensus: 199 K)

8:30 AM - Philadelphia Fed Manufacturing Index (Oct) (Previous: 37.8, Consensus: 28.4)

10:00 AM - Business Inventories MoM (Aug) (Previous: 0.8%, Consensus: 0.4%)

12:00 PM - EIA Crude Oil Stocks Change (Oct/09) (Previous: -3.19 M, Consensus: -0.3 M)

12:00 PM - EIA Gasoline Stocks Change (Oct/09) (Previous: 0.38 M, Consensus: -0.5 M)

Fed speakers: Hammack 4:30 PM

Thu 15 Oct: AMRO - Amaero Inc. Common Stock - NASDAQ - We are a leading U.S.-based producer of high-value refractory and titanium alloy spherical metal powders for additive manufacturing (“AM”) and advanced manufacturing, and a pioneer in Powder Metallurgy Hot Isostatic Pressing (“PM-HIP”) manufacturing of large near-net-shape components.

Thu 15 Oct: BMMX - Biomimix, Inc. - NASDAQ - Biomimix, Inc., an Ashburn, Virginia-based company established in 1986, is a key player in the United States' life science tools and services market.

Thu 15 Oct: IAM - Iambic Therapeutics, Inc. Common Stock - NASDAQ - We are a technology and clinical-stage life sciences company pursuing a fundamental shift in the biopharmaceutical industry.

XBI -3.1% on the week and -3.1% on the month, under its 50-day. The sector tailwind is gone for now. Reactions have to prove themselves.

Flagged Charts: IRD (Presenting Oct 20th)

Note: Never front-run biotech catalysts. Wait for the catalyst to hit, then assess if the reaction is tradable. Dates are estimates and can shift.

Full H2 Biotech Watchlist: TradingView

Have a Great Week!

Sean Sharpe