Hey Market Pilots,
I just went through my list of names on my watchlist as part of my weekly review and it sure looks messy out there. Some names are up, some are down, some are sideways, and most of them look erratic. This is to be expected when the market as a whole is out of a trend and there are many undercurrents.
September is a historically weak month for the markets, and this time we have a big election coming up. I have been warning my subscribers for a few weeks now that October is probably going to be directionless and choppy and based on the landscape of tickers I have been shuffling through, that certainly seems to be the case.
We have been watching leading names like EBAY come off their highs and fall below major areas of support. Now that price is below these support areas, movement up will either have to fight through that congestion or will be running into that overhead supply and push price back down.
Names could continue their wide, oscillating flags like FSLY seen here. Perhaps waiting until after the election for cues or looking for support on time frames such as the Monthly or Weekly.
Then we see formations like WIX where price has fallen, but resting at support. Will it bounce, or fall from that support? If it bounces, will it get smacked down hard, or will it be a new trend that can be captured?
Either way, the market from my vantage point is cloudy and with a likely chance of chaos, chop, and erratic moves. Be patient, be decisive, understand it is not easy right now, and always set your stops.
Over and Out,
Your Profit Pilot.