When the Going gets Tough, the Tough gets Going!

-- The Going Gets Tough--

On hindsight, it's pretty obvious why the markets are down.

1. The $S&P 500(.SPX)$Bearishrally that started mid June was overextended and could not break 200 day moving average.

2. When SPX was peaking, together with $NASDAQ(.IXIC)$, Jerome Powell had to talk that week. That created some uncertainty and caused the market to retrace, slightly. 

3. If Powell's speech was dovish, we probably would have hovered at 4108 support for SPX. However, Powell's speech suggested at 75bp hike in Sep! This wasn't priced in by the markets and down we go to the 2nd support of 3900. 

We'll probably reach the support and hang there before CPI data is reported on 13 Sep. 

4. And finally, the reason which is not a reason. A psychological admission that Sep (and Oct) are generally bad months for the stock market makes the selling "justifiable". 

One way to bomb the markets to previous lows is a worse than expected CPI + a larger than 75bp rate hike on 21/22 Sep e.g. 100bp! [Spurting] 

This combination is definitely NOT priced in right now!

--The Tough Gets Going--

Now, why are we afraid of Sep when we have gone through the first 8 horrible months of 2022??

1. If you wanted to sell, you would have sold in the first half of the year, or during the recent rally.

2. Right now, if you are still in the market, then this volatility means nothing. You only have the simple job of HOLDING on to your investments. 💪

3. If you are planning to add during this dip, then it is best to check the SPX and NASDAQ support levels. 

I have been keeping an eye to remind myself where we are.  As much as it's boring, it is always better to buy at support levels, especially for$SPDR S&P 500 ETF Trust(SPY)$and $Nasdaq 100 Trust(QQQ)$that tracks the indices. 

For stocks, there's additional requirement to monitor their individual charts before buying in. They are also prone to specific news that might boost or tank the stock price.  For example, $NVIDIA Corp(NVDA)$ fell further in post market after US goverment restricted chip sales to China.

That said, stay sharp, invest save and have a wonderful Sep! [Grin] 

@Tiger_chat@TigerStars@MillionaireTiger