Daily Market News - 7th October

The Return of Tech?

I’m sure we’ve all been aware, tech hasn’t fared terribly well over the last 6 weeks, in fact, it’s been downright disastrous, and if you didn’t pick up my Letter on Tuesday calling for a bottom in Tech - FOUND HERE - I wanted to update a few charts in todays 2min blog.

NASDAQ Composite

To me, this is text book support and resistance. Nothing complicated, no fancy Technical tools, just plain old support and resistance at play….if the Nasdaq Composite is going to rebound, this is THE place for it to happen… if you panicked into these lows and sold, you might feel a little foolish, especially if you’ve been listening to all the fearmongering on Mainstream Financial Media. (CNBC/Bloomberg etc).

Technical Analysis really does help in these situations. As I write this, S&P500 Futures are +1% along with Tech +1% so I’m hopeful my thesis could really start to play out. All bets are off below the levels highlighted and defensive action would probably be warranted.

Another consideration (at least in the short term), if we see the 10yr break out of a base, there could be a little more chop on the horizon, ultimately, I suspect both the 10yr and equities rise together, just as they did last year. I’ll be watching closely.

10 Year Treasury Note Yield

The Consumer Discretionary vs Staples Chart is also quite important for me. To have ABSOLUTE confidence in buy positions, I’d like to see this ratio resolve higher and break out, at the moment, it still has a little work to do.

In Summary

For me it makes sense to just be super selective, focus on the charts of the stocks you own/want to own and not overthink the broader market just now.

Our midweek Half Time Analysis went out to members last night with charts for individual names that are setting up nicely. More details can be found below.

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