This week is going to be volatile for 2 reasons:
- Midterm elections are tomorrow (Tuesday, Nov. 8)
- October CPI comes out Thursday at 8:30AM
And considering it will take a couple days to tally all the election results (we never had a problem with this before??), Thursday is going to be particularly volatile.
If the markets are truly a bet on the future, it will be interesting to see if there’s a swing in direction based on election outcomes. Or will the CPI print on Thursday have a larger impact on asset prices?
S&P 500 / $SPY
- We won’t get a clearer picture on which direction the S&P 500 wants to go until after votes are tallied tomorrow night.
- Wednesday pre-market and Thursday CPI print will dictate whether or not we break through resistance at $390 or continue the path down to the “Bottom Target Range”.
- Price is still crabbing and following my prediction – so far
Microsoft – Right on Target
In August I drew up this chart for Microsoft:
Here’s where we are now:
- This is a buy signal for me: I will be adding more to my Microsoft holdings here in this range
Meta / $META
- Mark Zuckerberg is in a difficult situation here
- He’ll be forced to pivot his vision for Meta away from VR headsets and to something that will compete with TikTok and, of course, Twitter’s new management
- Stock price is back to 2015/2016 levels
- If Meta pivots in strategy here, this could be an opportunity to buy really cheap
- I am adding to my position here at this level
Polygon / $MATIC (crypto)
- By far the strongest crypto altcoin on the market right now and the only crypto coin I’m eying this week
- Recently announced partnerships with JP Morgan and Meta/Instagram
- Price soared immediately after the announcement
- I am not buying back in at this range
- Potential for a double-top formation which could send prices back down after the hype
- Matic has been consistently bouncing off the red resistance line since July
- Good confirmation of a general uptrend, but price is currently in the upper band of this channel