The SPX, The NVIDIA and the IPO
SPX what are you doing to us?!
But first, let's not forget where we were. Over one month ago there was talk of the Fed stepping in to assist with the major financial drop that hit us from Japan's Yen Carry. Please remember everyone that they still are telling us they will need to do this one more time so expect a drop in the future.
Now were we are, we climbed back almost to our all time high see the purple arrow in the chart and the bears have created a nice line of defense for the last 7 days until they got their way on this Tuesday. You'll notice that we are hovering on the moving day average which is healthy yet it appears another move will take place. It's odd as September is a month of selloff we still have bulls in place because the Fed promised a rate cut. This tension is allowing us to keep things in an upward progression.
My sense is we will trend upward til the cut takes place. Once that happens we will have another surge and a massive fall thereafter. Keep riding the wave as is but there will be a time to get off and wait for the next one.
NVIDIA our fallout friend
This a look back from our last newsletter where I stated we have an overvalued stock and it dropped. I also mentioned to give it some more time to deflate and here we are....
You can see it dropped even further over the next few days. It crossed all the way thru the Bollinger Band and almost hit the other side.
Now is a time to re-enter or buy in as this has room to go up for the next handful of days.
KLARNA
Klarna is a buy now pay later app. This has been on an IPO horizon for over a year now and it seems like it is getting very close to announcing the IPO. The latest financial results were a major win after a longish drought.
This is an excellent fintech tool especially during a recession which has yet to be defined or announced. My sense is as we hit our downtrend for the overall market not only will retail rush to T bills, Commodities but they will seek for companies that will assist those in time of need. Ex: Dollar Tree.
Now with IPOs, we know not to buy the day of. All of those that have vested to their cliff will want to exit. Give it a week to breathe and deflate and then place your entry.
