Sometimes You Really Should Listen To Grandpa
The Dow is recovering first from the August correction. We think the Pesky Kids will soon follow.
DISCLAIMER: This note is intended for US recipients only and, in particular, is not directed at, nor intended to be relied upon by any UK recipients. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Cestrian Capital Research, Inc., its employees, agents or affiliates, including the author of this note, or related persons, may have a position in any stocks, security, or financial instrument referenced in this note. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice. Companies referenced in this note or their employees or affiliates may be customers of Cestrian Capital Research, Inc. Cestrian Capital Research, Inc. values both its independence and transparency and does not believe that this presents a material potential conflict of interest or impacts the content of its research or publications.
No-One Is Going To Make It Easy
Recall that our house view here is that markets are heading to new all time highs, inflation and the price of money regardless. You wouldn't necessarily conclude that from the current short-term charts however.
But this is rather the point. The whole game being played by large accounts is, persuade small accounts that the market is going to zig, then, just when they believe it and start to dance that way, QUICK with the rug pull and SHAZAM off we go in the other direction.
August’s selloff, if you zoom out to a weekly or monthly chart, is a nothingburger on each of the four major equity indices. And if you were to zoom in and look at a daily or hourly chart, it’s a modest correction within a standard technical pattern.
In our real-time Cestrian Inner Circle service - meaning in our own staff personal accounts too - we’ve used this correction to exit our short index positions (we use the 3x inverse ETFs - SQQQ 0.00%↑ for the Nasdaq, SPXU 0.00%↑ for the S&P, TZA 0.00%↑ for the Russell 2000 and SDOW 0.00%↑ for the Dow) at either a profit or else breakeven. Leaving our long index positions - being TQQQ 0.00%↑ for the Nasdaq, UPRO 0.00%↑ for the S&P, TNA 0.00%↑ for the Russell 2000 and UDOW 0.00%↑ for the Dow - set up for a run to the upside. (Want to learn how to trade the long and short side of equity indices at the same time? We teach you how within the Inner Circle service, and you can follow our own staff personal account trades blow by blow using our real-time trade disclosure alerts too. Learn all about Inner Circle, here.)
So, for Premium and Pro members here at Cestrian Market Insight, let's get to it. We now move on to walk you through our outlook for the Nasdaq, the S&P500, the Dow Jones and the Russell 2000, together with Bitcoin and Ether.