It’s October and panic is in the air. Technicians are flagging price points every which way lower, while back-flipping bears are numbed by their own genius.
Here’s a tidy method I’ve used many times to success in the volatile October period – grabbing new leadership at a relatively safe entry point and riding it long into year-end.
Identifying higher-lows is key, and it goes like this…
Somewhere soon, perhaps today already, the institutional leadership names which will lead in Q4 will mark short-term lows and attempt to bounce. Down the road then, after a material bounce, subsequent down-waves in these leadership names will mark higher-lows, even while the indices may continue to probe and re-test previous lows, or even drive to new lower-lows.
Don’t do what I do, but if and when leadership turns up from higher-lows, as the overall market and public sentiment continue to drive lower, this is your back-up-the-truck moment…mine anyway.
We’ll discuss this further, should it set-up once again, and perhaps pinpoint a name or two flashing brilliance in the line of fire. In the meantime, keep alive – another key in tumultuous times and a preferred way to prosper.