Close To Buy Time For Bonds & Tech?

Some Key Charts To Watch

Before I get into this weeks letter, I want to start by extending my gratitude to those who’ve reached out with kind words over the last month. I’m glad my work has continued to serve you in some way.

With September in the books, we now turn to what comes next in October.

I put out my monthly YouTube analysis at the weekend (embedded at the bottom of this page) and as the click-bait title of this weeks letter may indicate, there are some constructive looking charts developing and I want to share a few of them.

Lets start with everyone’s favourite Armageddon chart in the bond market.

iShares 20Yr ETF (TLT)

Everyone and their dog is looking for a bottom in the bond market.

If you’re looking at a vehicle like TLT for possible rebound levels, I think the above chart makes a lot of sense and I think we’re getting quite close to capitulation, at least in the near term.

That $81 Level and the extremely over-sold RSI levels are the 2 levels I’m watching closely. (please note RSI already hit over-sold).

Equal Weight S&P500

Everyone’s also trying to figure out a possible bottom after the recent market declines, again, as the RSP chart shows, we’re now straying into over-sold conditions across a bunch of indicators

If you like to pay attention to the dumb 10% correction rule, we’re down 11.5% from its recent highs, so if you’re in the camp this is just a text book corrective phase rather than another Armageddon type crash, you’re probably looking at the dip as an opportunity (like I am).

A relief rally is quite possible.

Nasdaq Relative To S&P500

For structural market trends, the way momma taught me, if it ain’t broke, don’t fix it.

Mega Cap Tech has lead the way for years and as everyone knows, it’s recently been taken to the woodshed, but like all good discounts in great stocks, they offer good opportunity to buy low : sell high.

The ratio chart above (for me) is something to consider, but let me add, last weekend, I already started to put bullish tech charts to our members, they’ve been working well this week.

Tesla Inc (TSLA)

Tesla was 1 of those charts and as I also posted it to Twitter, I thought it was worth adding to this weeks letter given it moved another 6% yesterday.

I’ve been bullish on Tesla above $210 and the recent dip for me offered opportunity and I’m working with targets up at $300 and $410 with the caveat I utilise trailing stops in case the market continues to fall off a cliff.

Pretty charts and targets are great, but I’d always advocate having a risk management process in case it doesn’t play out.

If you enjoy my charts, I laid out 20 of them at the weekend via our YouTube Channel

In Conclusion

Nobody wants to think about buying stocks just now because the mainstream media have painted such another bearish Armageddon masterpiece.

I’m just used to it and I’ve seen the playbook too many times to get affected by it.

Corrections are MASSIVE opportunities, they always are, whether the market has already bottomed or whether it bottoms in the next few months, I’ll hopefully be on top of it.

Stay safe out there, I’ll catch you next week sometime.

Please Note: Our 20% Autumn Sale below is still running for a couple more days.