Not sure whether it is a coincidence but US market did an about turn at the end of the trading day going below the 20 day EMA. The question is whether the bulls have what it takes to make higher highs.
If it follows the lower lows, we could see 990. That will be a 30% draw down. But equally likely this may be the end of a correction. We are experiencing the kind of volatility as if this is a mature bear market.
Whatever it is, evaluate which stocks you want to get in, space out your purchase. Staying 100% out is a bad idea because when it turns it turns hard and fast and likely you will miss the best 10 days. But you are susceptible to the worse 10 days as well. Go for stocks that can stay profitable and will not be a going concern.
Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.
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Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Fee-only Wealth Advisory firm Providend.
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His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.
You can read more about Kyith here.