Has This Growth Stock Seen Its Final Bottom?

I featured Etsy, Inc. (ETSY) two months ago, showing why we had grown more cautious in mid-August due to monthly options expiration.

That was a short-term issue that we all need to pay attention to on a monthly basis. However, if I look at ETSY on a longer-term monthly basis, I can make an argument that it's downside action retested a key price support level and we're now poised for a significant rally:

Enter Etsy, Inc. (ETSY):

If I'm correct about this bear market being cyclical rather than secular, and that interest rates will top and fall back, then a stock like ETSY would likely be a STRONG BUY at its current price level. ETSY has been in a bullish channel since going public in 2015 and its price drop from $307 to $67 completely retested its 2020 breakout. Listen, there's an argument to be made that many of the companies leading the stock market significantly higher in 2020 were priced for perfection, while our economic conditions are anything but that. We needed a "reset" of valuations and I'm of the opinion that ETSY is an excellent addition to an AGGRESSIVE portfolio.

Happy Trading! Tom Bowley Chief Market Strategist EarningsBeats.com Better Timing. Better Trades.