Dear Members,
Markets just had 135 points swing on the downside after the CPI data came in. As we have been saying, the markets will start moving higher from 17th October 2022. Last three weeks we have been predicting the markets to bottom out on the 17th of October - period. We mentioned the same in our book, we said that one of the most volatile times in the market was between 8 October to 16 October. This is what we mentioned in the book: This will be a very volatile cycle. From the 8th of September to the 8th of October stocks will do well, but from the 8th of October to the end of this cycle stocks will trade very volatile.
I don’t want to say much in this update, but today and tomorrow buy long positions in stocks and ETFs and buy call options so you lock your risk. We 100% believe in our theory and the theory tells us the markets are to move aggressively higher from 17th October.
The market will witness buying even today; right now, S&P is trading at 3496 and Nasdaq at the 10451 level. These are great levels to buy, I am buying and I want to close my eyes and would like to wake up on Monday.
Let’s see if our theory fails here or once again our theory can call a bottom on the right day.
If you can handle the next 36 hours of volatility, then go ahead and start buying call options expiring on 17th November as both these indexes will be 12 to 15% higher from today.
Thanks & God Bless
Mahendra Sharma