Whats Next?

Hi all,

On my last post I thought it was time to buy the dip.

What about now? Well lets dive into it.

Overall, the S&P has been meandering around since we completed DeMARK 13 sequential and combo tops at the start of August. Since buying the dip in the middle of August, we have seen a nice rally back up into a recent trend break.

My quick view here is that the market is finding some sellers on initial selling point.

Taking a look at AAPL, which has been leading, we can see we are now filling the recent down gap which should bring in some selling as well.

If someone asked you, “What kind of market are small caps in (bull, bear)?”

The obvious answer is: range bound market.

“Why are you so bearish Petr, I thought you are a permabull”. Yes, I kind of am. However, its painfully obvious that we are still dealing with a lot of uncertainty in the market and the technical clues are the most obvious I’ve ever seen since I started trading.

If I had to buy something (and I did), it would be PDD. Yes, its a China stock. Yes, my track record with China stocks means you should prolly short it. However, the ER was astonishing and they are way more focused on the West than in China. Look up TEMU if you don’t know what PDD is.

NVDA has been a big leader, I’m watching this retest to see if it can come back to 370. If it can, that could be a HUGE play.

Not even going to mention bonds because if I write anything bearish you guys all cry. Stay bearish until an actual pivot. Not that hard.

This was the last 30-year bond chart I posted and my thoughts have not changed from a month prior.

Best of luck!

PS my chart software is having a 65% off sale. I do get a little kick back if you sign up but I love it. Its web-based and has the best scanning I’ve ever used. You can sign up here

Feel free to share this with your people.