To The Moon

Off to the races

The markets were mixed on Wednesday with the $DJIA(DJIA)$flat, $NASDAQ(.IXIC)$down 2.3% and the $S&P 500(.SPX)$off around 3/4 percent. It was obvious tech was under pressure no thanks to Alphabet and Microsoft but the retreating yields supported growth stocks and the market in general. It seems to be a duel between worries of a recession and a possible Fed pivot. In honesty, the moment the market comes to grip with the possibility of the recession and once the earning downgrades sinks in, the market will fly. And that will probablyhappen before the companies start reporting improvements in earnings which will probably be around the second half of next year. 

As of now, I believe the year end rally is on and the 4100 level is a realistic short term target. However, as mentioned earlier, those levels will come under heavy selling pressure being aregion of multiple confluence zones. And I stillbelieve we will have a possible capitulation wave corresponding to the C wave from around those levels which will complete the big picturecorrective structure and which will lay the seeds for the end of the bear market. When we align this with data which averages out bear market durations to be just above a year's period, we have nice congruency across the board. We are almost a year into this bear market so it is worth holding out and be patient!

So I am riding on the upcoming rally into the year end before becoming cautious at the 4100 levels. At the moment, I am in a bullish mode and will be bullish until price action suggests otherwise. 

Stay safe 😊