With the release Of the October CPI at 3.2% which was Lower than the previous month and had beaten the analyst expectations, the market had a rally effect which is all within expectations.
What we need to be cautious of now is the current price and valuations, does it make sense for today's general economic context? My call is, that there are more downside risks than upside due to many uncertainties outside the US, within the US, slower economic growth, companies doing retrenchment, and high inflationary are still not resolved Which means more downside risk in the short term.
Please exercise extra caution at this point as the US stock market has recorded a tremendous amount of gains in the last 2 weeks. Whatever anticipated data was already released, now is the time when profit-taking correction might occur. The market is also at a very sensitive stage, any bad news will cause the market to move into price correction mode which is healthy to prevent over-valuations of the companies.
Trade with care and good luck to everyone with your trades, protecting your capital and knowing when is profit taken is very important. No one will be able to buy at the lowest point and sell at the highest
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