Trade The Waves, Invest The Trend

By Bennett Tindle October 15, 2020

Are we ready for new highs prior to election day? I think so. In fact, just a few short weeks ago I was reviewing charts on our public Wednesday LiveStream which suggested the Sep 02 – Sep 24th move in the S&P 500 was simply a directional correction, setting us to print new highs in the indexes prior to election day. We have now broken out of the downtrend channel, and even surpassed Sep 02 highs in Consumer Discretionary as well as our favorite Semiconductor ETF, the SMH. I’m expecting Technology and Communications to join the party soon.

What about this correction everyone keeps talking about? Sure — we are overdue for a larger corrective pullback, but when the time comes, is it one to fear? I think not. In fact, I feel you should welcome any corrective pullback and be thinking now about how you can take advantage of it. Perhaps you have been underexposed this past year, or maybe you are just looking to reallocate and restructure your holdings. Whatever the case may be, plan ahead, and remember the quote from famed investor Warren Buffet!