HAN8
2022-12-21

Great

@Ultrahisham：Short bounce before the dip to 3700-3800 levels The markets $DJIA(.DJI)$ , $NASDAQ(.IXIC)$ and $S&P 500(.SPX)$ fell in tandem on Friday. It looks like a bottoming process of the third wave of the C. A fourth wave bounce should follow which I expect to be shallow before another dip down. More data are out this week although not as market moving as the data we had the past week. Early week sees housing data with GDP estimate mid week and the later part of the week has some consumer data. The market is treading the road map that I laid out quite nicely. If it follows the map to a T, I am expecting a short fourth wave bounce onthe broad market index pretty soon with a target of 3880-3920 before the market resumes its downwards trajectory. That will be the fifthwave of the C and what I hope will be the bottom of this big wave 2. The target of this final fifth of the C of the 2 is around 3750-3795 thereabouts. My get out zone is 3720. If the market goes below that, I will be going to an almost all cash position. I am already layering into whitelisted targets which have hit my buy zones such as $Taiwan Semiconductor Manufacturing(TSM)$ . The other companies that I am looking to buy into are$NVIDIA Corp(NVDA)$ and $Advanced Micro Devices(AMD)$ . If the market bottoms at the mentioned levels,I am expecting a rally into the early week of January to around the 4400 levels which will bethe zone I get cautious at again. The market should retreat again from there and depending on the extent of that retreat, that will decide my positioning. At the moment, I intend to ridethe possible upcoming rally once the market bottoms around 3750-3800. Hence the decision to layer it at these levels with a tight stop at3720. Thanks for reading my commentary! Stay safe! 😊
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