To The Moon

Dancing with the bears (or bulls)

It depends which side you are on really. But the markets are really teasing and taking their time to show which direction they want to take.The markets $DJIA(.DJI)$ , $NASDAQ(.IXIC)$ and $S&P 500(.SPX)$ took a dip on Monday and it seems that there is a lean towards the downside for the time being which falls into my current thesis that the market is downtrendinginto a wave 2 and if this wave 2 proceeds intothe end of the week which coincides with an important Gann time factor, this brings about a 75% probability of a reversal into a powerfulwave 3 rally into the year end. There is still a 25% chance that this does not pan out. All these are based on research and data after all and this market environment is very tricky indeed. But that is why we prepare ourselves for all contingencies in the first place! 

So my road map is still as follows

1. Trend down into the end of the week as a wave 2 and if levels hold nicely at the levels, expect a powerful wave 3 rally into the year end.

2. Trend up into the end of the week which might mean that the wave 2 is yet to come and rhat means to prepare for more dips ahead.

The risk to the above projections is a black swan event which might necessitate taking a full risk off mode. 

I am still taking a wait and see approach afterraising cash to prepare for the wave 2 bottomwhich I believe is in motion now. But as usual, price actions will determine decisions so caution is the mood as of now. These are just my personal views so a gentle reminder to please kindly do your own due diligence!

Thanks for reading my commentary.

Stay safe! 😊