The recent market volatility and abrupt short -term movements may seem disturbing, but those who have followed the exposure reduction strategy at key moments should face them more peacefully. As I recommended at the time, reduce exposure in the European Stock Exchange near the top of the Bubble.com, around 5,520 points, as well as in the North American Stock Exchange when the S&P 500 lost the support zone of the 5,920 points, using the accordion technique, it has turned out to be a successful decision.
This methodology has allowed being in a solid position to take advantage of opportunities at key support levels that have been monitoring for weeks.
My recommendation has been clear: wait for European stock exchanges to digest the strong rise that began at the end of last year and, in Wall Street, wait for the indices to return to Trump’s hole. However, I have always emphasized that the optimal would be to expect a fall in the US markets with an intensity similar to that observed between July and August of the year passedor, whose climax was reached on August 5.
This week, the S&P 500 has reached the key support of the 5,520 points (Adjustment of 23.60% Fibonacci of the entire rise from the minimum of 2022 and exact replica of the earthquake last August), level that I suggested as a start point to deploy part of the accumulated liquidity, in line with the sniper mentality that I always defend.
However, it is essential not to go crazy buying and maintain caution, since Nasdaq 100 has not yet reached its analogous support zone in the 18.700/19,000 points (minimums in 19,155), And the Dow Jones Industrial has confirmed a bearish pattern that suggests possible additional decreases up to 39,000 points. The same goes for the Russell 2000, which is still pending the area of the 1960/1,930 points, level at which they plan to increase positions in disruptive values for the portfolio of my twins.
In any case, beyond short -term uncertainty, the important thing is to maintain a well -defined action plan. Your Trade and Trade Your Plan Plan… following this maxim, with the S&P 500 in the 5,520 pointsI am in favor of starting purchases, reinforcing the strategy as soon as the Nasdaq 100 reaches the 18.700/19,000 points.
While the main technological index does not pierce the support of the 18,700 pointsI will continue to trust a bullish scenario that does not require looking for the minimum panic area of August 5, whose reach would be a true Christmas gift. As Baron Rothschild said well: “The time to buy is when there is blood on the streets, even if the blood is yours” and that would happen if we fall to the minimum of August last year.
In short, the plan is clear: Start purchases in the Nasdaq 100 and S&P 500 support zone and complete them if the markets collapse until the minimum of last August. If purchases are made in the current area and is not comfortable with the possibility of an additional 7%drop, it would be advisable to close positions if Nasdaq 100 loses 18,700 points and reopening them in a descent to 17,400.
The financial markets reward those who have a plan and the discipline to execute it. As Charlie Muger said: “The great money is not in the purchase and sale, but waiting”. Remember that in the bag, as in life, A threat is just a disguised opportunity.
#threat #disguised #opportunity
