3 Oct 2021, 10:16
Last week, we had already witnessed the stock market indexes breaking down a strong support level. It has become apparent that most of the herd are getting jittery.
However, do not put all your eggs into the bearish basket. For all the fear surrounding stocks currently, we see the Dow Jones Index start to find another level of support. As you can see from the chart, the index is now lying on an intersection between 2 critical lines of support (the black and blue lines). If the stock market could bounce off these 2 levels of support, this could eventually kickstart the traditional year-end rally, going into Thanksgiving holidays next month.
While most of the herd are bearish right now, we may take the opposite direction by looking to buy more stocks into our portfolios. Anyway, most of the time we make money when we bet against the herd.
If you had been following our weekly updates recently, we had always maintained that this current dip is most likely a stock market correction and not a true crash. Our usual warning signals have not told us that the big financial institutions have reverted to bearish modes. Therefore, we are always looking for a bottom to carry on buying more stocks for our portfolios.
EmSociety is a community that aims to empower you with knowledge & strategies to confidently invest in the financial markets as well as our vision of making financial freedom accessible to everyone.
If you have any queries, feel free to contact us at [email protected] for a complimentary 1-on-1 consultation.