Hey Market Pilot,
This weekend was the 20th anniversary of the September 11, 2001 attack on our country. I like to take a moment and appreciate and recognize those who worked hard to help save as many lives as they could and those who lost their lives in that tragedy.
I know it seems like there is a lot of divisiveness and uneasiness in our country and politics right now, but we can think back to 20 years ago when a tragedy like that helped us to realize maybe not sweat the small things and that we should band together as better and kinder citizens to one another.
As for the markets, I wrote about the phrase “sell Rosh Hashanah, buy Yom Kippur” last week. In that newsletter, I said we might get some weakness in the market. Well, that sure rang true, especially on Friday where it seems the market fell off a cliff. The S&P 500 broke the daily 21 exponential moving average (EMA) and we aren’t yet to the daily 50 simple moving average (SMA). I am a little bit curious about a bounce into this coming week especially with the second half of the phrase, buy Yom Kippur possibly kicking in.
From there we might need to be careful since September is seasonally weak and we have yet to actually test the daily 50 SMA. So we might be between a rock and a hard place as far as the market goes until maybe we get a big flush out later in the month. If we do get a flush out, the silver lining at least could mean that this would lead to a significant dip to buy.
Your Profit Pilot, TG