This is definitely in transition. ST downtrend broken and MA's turning up. This also looks like the first concerted effort in a long time.
It has to break that 4.75 ish line for a further move, but I do think we are about to have a correction in overall markets of at least 10%.
Inflation is rising, oil and gas crisis sparking price rises, power and fuel issues in Europe, China slowdown with power shortages, which in turn will lead to a shortage of goods, which in turn will increase prices. USA embroiled in politics over debts ceilings and spending, and COVID is not over. Aussie bank crackdown on lending in a few weeks with govt support shows they are worried about overheating. Iron Ore price has collapsed and Australian royalty income plummeting. All these things take months to filter through. Most peoples super fund balances will have taken a whack in the past month, thus dimming their outlook.
I am finding it damn difficult to find any positives out there. Biotech and healthcare sectors may be protected somewhat from a down turn, but it will not take much to have money pour out of growth stocks if yields keep climbing and US$ rises. Only saving grace is our $ plummets and protects the mining industry. But the US is going to taper and that will send waves, not ripples though the market
Some housing numbers out in the US tonight which may influence yields. October is going to be rough IMO.
For the record, I started some warrant shorts on banks today, small positions, but dipping the toe in. If I am wrong, it wont matter, If the downside develops I add and have some insurance.
It was interesting to note that last night, Cathie Woods Ark funds went on a buying spree across a number of stocks, so she clearly sees the fall as a chance to buy. Biggest list of buys I have seen in a while
