Was October the market bottom?
That is the question on most investors' if not all investors' mind. We are a year into this bear market and avid investors will know that bear markets last roughly a year. So if statistics bear correct and we are not in an outlier, we are about at the end of this bear market. So October sounds about right. However, it is one thing to guess and another thing to plan.
My strategy is always to figure out all possibleroadmaps and let price actions guide. Charts always sniff out economic rumblings and lead macroeconomics and data. That is why it is my go to for managing risks and allocations. Price action is encouraging after Powell's speech. However it has not confirmed anything as one up day does not mean much especially whentrend lines are still intact.
The SMH index and semis were looking at an incomplete wave 1 pattern and now seems to be completing it with a wave 5 push on lower volume and momentum which is textbook wave 5. Other sectors like financials and transports also look to have completed their wave 5s to complete the big wave 1 and everything sems to be hinting at a wave 2 retreat coming up.
So if you ask for my honest opinion, I am leaning towards October being the market bottom.However, there seems to be good possibility of a market retreat in the near term. The wave 2 retreat is where I will look to load up on names such as $NVIDIA Corp(NVDA)$
Thanks for reading!
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