Look before you leap!
This week I won't do much buying or trading. Why?
The SPX closed at 3612 last night. After breaking June lows, now we are at double bottom. First bottom happened a week back. The market direction is unclear, but most likely it's going to inch down with such bearish sentiment permeating through the air. 😈
Look at the first plot and see where we are. Notice the blue line 3533. What's that??
Go to second plot and see that it coincides with a support back in Sep to Nov 2020. That's why I think the pain is not over. The index might continue to inch downwards to the blue support line of 3533.
It's not too far away. Maybe Mr Market thinks that noone (i.e. investors) won't notice. [LOL] [LOL]
I also drew another support line at 3234. That's where some analysts think the index is heading. Woah. That's a long way down. [Spurting]
As mentioned, I'm staying out of the markets this week till we see support on the index and my watchlist stocks.
13 Oct is CPI day! According to Bloomberg forecasts, the headline consumer price index for September is expected to show a slight moderation on a year-over-year figure to 8.1% from 8.3% in August, but an increase to 0.2% from 0.1% over the month.
That doesn't look like a sharp drop, if any, is coming soon. Now, even missing estimates by 0.1% will tank the markets.
Good news is bad news and bad news is horrible news.
I'm staying out of the markets for a bit and enjoy my everyday experiences till the dust settles. See you in a bit.
@TigerStars@Tiger_chat@Daily_Discussion@MillionaireTiger
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Thanks