The boring market report – October 15th 2020

Amid sad jobless figures and coronavirus new travel restrictions in Europe, markets may be in a strange mood but money flows by billions in stock market because bonds have ridiculous or negative yield. Interesting? No. This is noise. All this does not explain why you, as an investor, will pull the trigger to buy Apple or Tesla stock. Those so-called correlations between news and market are complete non sense!

Let’s go back to our sound mathematics based trading!

S&P after crossing reaction line in now back up, see how good those reactions lines to find bottoms (which you can’t play of course!). As explained in yesterday’s post, new 3-months objective is 3672, we are already 6-steps from the bottom, which is quite good. Indeed the tail winds may push prices horizontal for a few days, but next reaction line is far away, do not expect a reversal in the short term. No need to say you need a stop anyway, this is trading, not betting on the wind direction!

Tesla, after hitting twice the reaction, has gone through. Next one is very close, so better be careful!

Bitcoin: does anyone care about Bitcoin anymore? Maybe you should! Next objective is 13230$, which means the gain for 2020 could be close to 100%, compared to current 10% on S&P500, before the US election…

That’s it. Until next time, trade safely!