Message to Subscribers March 19, 2020
Posted by OMS at March 19th, 2020
The sky is falling, the sky is falling. That’s all I’m hearing from the news media. Yet when I look out on my backyard today, I see a beautiful sky here in Jacksonville. Enough already! The sky is NOT falling. I’m just seeing an orderly decline in the markets, a decline predicted by the technical wave patterns. Yeah, we’re going through some tough times, both in the economy and in the markets. But we will get over this… Get a grip!
Hell, even if the medical experts don’t come up with a cure for the corona virus soon, trust me…the Mothers of America will. Having their kids home seven days a week will cause them to demand a solution to the problem.
Yeah, I know things are problematic now all over the world. Heck, I haven’t received a call from India in over a week asking to extend my car warranty or to fix my computer. Forget what’s going on in China and think about all those poor worried folks in India. If AT&T goes out of business, how will they make their calls?
If you followed the indicators and got out of the markets when they turned negative on 18 September with the Dow at 29,230+, you’ve been safely on the sidelines. Now the Dow is down over 9,000 points. When the Dow was at 29, 500, investors thought it would go to the moon. Over 85 percent of small investors were buying Call options. A ridiculously high number. Hmmm? Now they’re afraid it will go to zero! That’s NOT going to happen.
So, calm down. I’m intrigued by yesterday’s action where the Dow bounced into the close. If we can stabilize today, we should begin to rally. No, I don’t see a rally going back to the 29,000 level anytime soon. That’s not going to happen. But if we do rally, even back to the 23,000 -24, 000 level, it will tell me the world is not coming to an end.
Continue to stay sheltered, avoid those big crowds, and wash your hands. Preserve your capital. There are many EXTREMELY oversold stocks out there ready for a short-term bounce. We’re gonna pounce on them once the indicators give say so.
h
Not sure of the terminology we use? Check out these articles
The Hockey Stick Pattern
The Creation of Waves and Trends
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