Market On Open - Wednesday 23 August

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Ignore Your Gut And Look At The Charts

Forget what the sinking feeling in your gut is telling you.  Ignore the sentiment saying, well, if I had just YOLO-bought the close and YOLO-sold the open a couple times this week, I would have felt a genius.  (Though that is in fact true!).  Look at the charts.  At the moment, right now, could change tomorrow, the recovery from Friday's intraday spike lows is ongoing.  It's not a direct-ascent recovery.  It's a will-it-won't-it recovery, which is what it looks like when large account players are deliberately trying to take money off of small account players by confusing the heck out of them.  (Which is what happens all day long on every day the market is open.  Don't forget the purpose of the market is not as a weighing machine or a probability function.  The market is a simple money transfer mechanism.  It transfers money from small accounts to large accounts.  That's what it's there for.  Otherwise why would it exist?).

Look at, in particular, the short-term charts below.  Anything can happen, they can plunge to new local lows after Chairman Powell sneezes or if Nvidia trips on its shoelaces, but right now the facts are that Friday's low has held and with it the August correction has thus far bottomed.  Which means the way to look is, for now, up.

Let's get to it.

For our paying members only we now walk through the shorter- and longer-term outlooks for the S&P500, the Nasdaq, the Dow and the Russell.  

We also include more detailed Cestrian staff personal account trading plans in our charts - these are disclosures rather than commandments, we include them to (1) clarify our own thinking and (2) to help explain what we think about the direction of markets. Paying Inner Circle members can reach out in Slack anytime to discuss.  You will, of course, make your own decisions as to how to use our charts.