Saturday, September 26, 2020
Broader Market Review
The major averages continue to follow our projections down from the reversal high we forecast for early September. The drawdown has been orderly with large down days balanced by strong recovery reversals resulting in a flatter trajectory lower than the Corona Crash was. While we do expect volatility to increase into the election, current data suggests a worst case depth would be around 23,000 on the Dow and 8,600 on Nasdaq.
Nasdaq
Dow
S&P 500
If we get down to these levels we will be looking for bottoming confirmation to begin increasing/adding exposure to those individual stocks we expect to be positioned well in their own reversal pattern but also aligned with broader market reversal positioning. For the most part, I have identified those individual stocks over the past few weeks and you can find them in the Weekly Commentary.
I will continue to send out email trade alerts when I buy or sell.
Sometimes, it’s best to do nothing and let the market play out and come to us. It’s now one of those times. I’m currently traveling through Tuesday so a short commentary this week and I will hopefully be back in the saddle by Wednesday.
Don