I am composing this post on Tuesday night, late into my flight back home. Say what you will about Bear Force One, but it came through. The last day of the horrible two-month countertrend rally was August 16th. My departing flight was August 17th. Bang. BFO for the win.
With an eye toward September, I’ve been wondering how far we’ll manage to go down. I suppose there are a couple of prospects in mind: one of them medium-strong, and the other much stronger. The medium-strong is illustrated with this chart of the QQQ. The yellow tint I’ve made is an important support point for two reasons: first, it is a major Fibonacci level, and second, it corresponds with a long-term uptrend. They happen to converge at the same spot, and near the end of September. That would make a clean bottom.
A more ambitious target is expressed by way of the SPY, where I’ve marked a tint with the same two styles of support making themselves known: the major Fibonacci (boldfaced) and the long-term support line.
My present positioning is “fully loaded”. I’m also pleased to see you long-suffering IYR put holders are finally enjoy some big appreciate in your portfolio value as well.
I’m looking forward to being home again. No doubt about that. See you soon!