October correction? .... Invest into the Indices

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Derek  1 Oct 2018

Good Morning,

There is this myth that markets always correct in May and October. Even the saying: “When in May, go away”. When I look at the S&P500 index, there was no correct the previous October! Actually there was a strong bull run.

International:
The US had hardly any movement and the S&P500 closed with a 0% move. The Nikkei rises as dollar hits 11-month high against yen.

The S&P500 closed on my long term trend line and EMA8 line in neutral area. (Heatmaps are yellow). The Bull trend is still active until this line gets broken. The futures are all positive, so a bounce may be on the cards.



a Horrible week for Facebook turned even worse with the departure of Instagram founders and beef with WhatsApp co-founder. Technically it bounced down from my negative trend line with a FrontRunner break and red MACD bar.



Although the NASDAQ had hardly any move, my old favourite, NVIDIA Corporation, had the biggest gain on the S&P500 (+5.1%). I marked on the chart where FrontRunner broke up and the MACD made a green bar in oversold territory. (Super Signal)



The financial sector is still correcting and will offer good oppertunities soon. I showed Bank of America on Friday, so lets show JP Morgan as their graphs look about similar. This time I show the reverse signals where the correction started. First the doji warning, then the FrontRunner break down with a red MACD bar.




JSE Technical:
The JSE is one of the worst performers currently in world markets. I have hardly any share worth mentioning in a green trend catagory. World investors are staying away from a country with so much uncertainties. Why would one invest in 0.4% of the world potential if there is any uncertainty? Since March the JSE has a -4.5% performance and the DOW +5.2%. About a 10% swing diffirence.

I want to show you the STX500 that is an easy investment vehicle on the JSE into the S&P500 of the US. The trend line is not broken yet, nor FrontRunner, but we did get a green MACD bar with a doji. Patience!



Similarly I show the Satrix40 of the JSE. It is better sometimes to invest in indices rather than individual shares. Not a pretty picture the Satrix40 and that is suppose to be the JSE pride.



You must enjoy your day.
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