The month of October was negative.
From the start of the month the S&P500 (and other indexes) dropped sharply.
I soon expect a move up that will last for some weeks (maybe until the end of the year or until January) but I will consider this move only a reaction and nothing more.
An interesting reaction that will prepare the market for the main move down, the Bear Market of 2019.
As you can see on the chart, my opinion is that from 2009 to Oct 2018 we had 5 waves up.
That means, if I am correct, that the long Bull Market has ended.
During October I mentioned several times that the main strategy (apart from going short) should be Capital preservation.
As soon as the reaction starts, it will be a nice opportunity to go long in speculative moves following the move up until it fades.
But it will also be a splendid opportunity for investors to analyze their long term portfolios, sell positions and gradually increase their cash.
When the reaction ends, Cash will be King. Remember that.
From the start of the month the S&P500 (and other indexes) dropped sharply.
I soon expect a move up that will last for some weeks (maybe until the end of the year or until January) but I will consider this move only a reaction and nothing more.
An interesting reaction that will prepare the market for the main move down, the Bear Market of 2019.
As you can see on the chart, my opinion is that from 2009 to Oct 2018 we had 5 waves up.
That means, if I am correct, that the long Bull Market has ended.
During October I mentioned several times that the main strategy (apart from going short) should be Capital preservation.
As soon as the reaction starts, it will be a nice opportunity to go long in speculative moves following the move up until it fades.
But it will also be a splendid opportunity for investors to analyze their long term portfolios, sell positions and gradually increase their cash.
When the reaction ends, Cash will be King. Remember that.
Comment:
I saw this title today:
"US wage growth reaches highest pace since 2009"
It is so obvious that the Bull market has ended... Just my thoughts...
"US wage growth reaches highest pace since 2009"
It is so obvious that the Bull market has ended... Just my thoughts...
Comment:
Nothing new to add.
Long term investors should continue to preserve capital.
Speculators/Traders should continue to consider any move up just as a reaction and nothing more = opportunity to short or increase short positions.
Long term investors should continue to preserve capital.
Speculators/Traders should continue to consider any move up just as a reaction and nothing more = opportunity to short or increase short positions.
Comment:
Maybe the reaction is starting.
The big picture remains the same. Use this reaction for short term profits.
Once it fades, increase your cash positions.
The worse is still to come in equity markets.
The big picture remains the same. Use this reaction for short term profits.
Once it fades, increase your cash positions.
The worse is still to come in equity markets.
We are now in Wave 2 (reactive) which still has room to go.
It may test 2800+ or not. I am following it closely.