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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.
It could be that markets are going to swoon and head back to the lows of 2023, or below. You can construct an A-B-C pattern corrective path in all the major equity indices with the correction starting mid July, running in an A-wave down to mid-August, then a B-wave up to the start of September and now a C-wave down to ... below the mid-August low. If true we have some weakness to come yet in the indices, and if those August lows are broken, get ready to hear the gnashing of teeth and wailing of woes etc all over the Internet and TV. We aren't sure whether we'll get that degree of C-wave down but if we do, we do, and it doesn't argue against a subsequent push to new all time highs. It would just be a normal Wave 4 down on those shorter-degree charts we post here.
So in staff personal accounts our first goal is, see if we can sell our remaining short index positions at breakeven or better (the first of those, SDOW, was sold yesterday in post-market hours at a very modest gain, leaving us naked long the Dow for now). And the second goal is, see if there is an opportune time to add to longs - probably single name stocks since our allocations to long equity index ETFs is good enough at present.
So, for paying members, let's get to it. We now move on to walk you through our short- and long-term outlook for the Nasdaq, the S&P500, the Dow Jones and the Russell 2000, together with Bitcoin and Ether. If you've yet to become a full member of the Inner Circle, you can sign up right here.