Mid September – some way down

September has a rumour to be the worst month of the year.  This year looks to be such a year.  Since September 2. the Nasdaq has tanked 10%, a correction as it looks.

The chart shows the market the last month.  It rallied nice up to September.  I somewhat prepared you on Twitter what was coming.  September always a month to be cautious.  Most bic caps have tanked like our long time favorite Apple.

In my «Investing under a Pandemic» from August I adviced you to ride the market and sell when the market started tanking.  A wise plan it seems now. My blog was timed well.

Investors wonder now what to do now mid September.  You probably wonder if this is the end of the 11 year bull or if it is just another correction.

The hugh scale of moneyprinting suggests the rally to go on.  But when will the upwards long term market end.  GDP numbers indicates a really slow economy, the real economy looks bad.

As I interpret the chart above it will fall a bit more, nothing suggests a short time rally.  If you take my earnings season perspective to stocks into consideration, there is a possible rally starting around the beginning of quarter 4. My earnings season theory says there is a probability of a rally from the quarter’s start.

Others I have read suggests this to be a sound correction.  What should you believe?  In my book we are at a very interesting part of the correction will it fall more or will quarter 4 earnings take us into bull territory again.

This is the longest going upwards market in history. In March this year it had lasted 11 years.  It will for sure come to an end one day.  The probability of it to happen now  is a lot larger say 5 years ago.  We for sure come closer and closer to a bear market each year that goes.

Now it is important to follow the direction commencing and be especially aware of a possible rally around the start of next quarter.  Just a couple of weeks to go now.  Let us see if the markets commentators are right this to be a sound correction.

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