Professor’s Comments – Before the Open 8/19/2022
Posted by OMS at August 19th, 2022
US stock futures are broadly lower this morning as recession fears grow in Europe. Remember, while Wall Street has been celebrating for the past few days thinking the Fed won’t be raising interest rates as much as they planned, Europeans, especially the Germans are fighting the worst inflation in years. Gas prices in Germany have doubled in the past two months. Two years ago, a unit of electricity used to cost 40 euros. Today, that same unit costs 540 euros. Inflation and recession are real in Europe. And as economic conditions begin to worsen in Europe, they will start to affect economic conditions here in the US, including stock prices. So, just because Wall Street has its head in the sand with respect to inflation, the economy, and stock prices, you shouldn’t get caught up in their nonsense.
There was a small change signal from the A-D oscillator last night, so we need to be on the lookout for a Big Move today. Yesterday’s sideways action in the indexes could have been part of sub-wave 2 up within Wave 3 down. If this is the case, the Big Move could be the start of sub-wave 3 within wave 1 of Wave 3 down.
BTW, in Thursday’s comments, I discussed BBBY and how it and other meme stocks were in play and could be signaling the end of retracement Wave 2 up. Yesterday, a day after reaching a high of 30, BBBY closed at 24.58. This morning BBBY is set to open near 10 after Ryan Cohen dumped his shares. Apparently, Cohen thinks BBBY is a piece of crap too.
Please be careful with your trading today. Wave 3 down could be starting.
h
BTW, Dave told me that several of the emails he sent out announcing Tuesday’s Update Class are being rejected by a students email client. If you didn’t receive his email and want to attend the Class, please sent him an email directly at johnsoncend@gmail.com Thanks.
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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Category: Professor's Comments