To The Moon

Taking a breather into the 3800 levels

The markets $DJIA(.DJI)$ , $NASDAQ(.IXIC)$ and $S&P 500(.SPX)$ retreated on Monday post holidays. It was a much expected move and Iexpect them to retreat further into next week off a wave 2 move. The levels I am watching on the broad market index are the 3800 levels which will make for a nice rebound off the lower trend line as well as the Fib levels for a wave 2 retreat. Following that retreat, I will expect a nice wave 3 rally that would carry us into the 4300 levels. All hypothetical and based on chart analysis of course. A road map is important to gauge risk levels and manage positions but price action will determine decision making. 

On the macro front, not really much market moving news. Some encouraging developments from China on the Covid front with respects to them being more rational on their covid policies. They are appearing rather backwards now with their approach and their citizens also seem to think so with more getting more vocal.The world has moved on beyond Covid rapidly opening up having long left the Covid zero policy behind which is quite honestly rather ineffective in view of the ever mutating virus which seems to be getting more benign with each mutation. So if China do not align with the world, it would probably not be in their best interest. Inflation wise, Powell will speak on Wednesday and the markets will be interested to see if there is any shift of stance or hints of any dovish tilt. 

So I am still waiting for the market to pull back nicely before adding any positions. Mood is cautiously optimistic.

Stay safe 😊