Today was a whippy day on the SPY/SPX/ES equity markets. SPY did wind up going over the prior high. ES did not yet. We showed ways it could. Market participants are expecting the PCE report out tomorrow with the markets closed. Below is a 1-minute chart of just part of today's movements on SPY.
Because there were some indications we were possibly in a fourth wave, FLAT wave structure could not be ruled out so - while I was fully prepared for an end of day sell-off - the chart above shows what the computer geniuses did in the last one minute of cash trading today.
One has to laugh. And the purpose is? Yes, there remains a way to count a top. And as the comments for the prior post show, there is also a way we might be in diagonal fifth wave. The structure is unclear so flexibility, patience, calmness, and a wry smile are the tools at hand.
Have a good start to the evening and to the long weekend.
TraderJoe
Yes indeed! The price action really makes one smile. Thanks for the steady hand, and enjoy your week-end! 😊
ReplyDeleteI don't see much margin of safety here for software companies. Have a look at their P/E ratios! And that's with many CIO's cutting back on "enterprise software" due to the slow economy & high interest rates.
ReplyDeletehttps://www.dropbox.com/scl/fi/q33meqe0qo5npes76tsph/software_companies_pe_ratios_20240328.png?rlkey=l3ry7gxhwif2lm16b5venfqki&dl=0
it's not just software companies that lack a margin of safety.
DeleteA new post is started for the next day.
ReplyDeleteTJ