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Money Monday: The Drunken Walk Home

This week is going to be volatile for 2 reasons:

  1. Midterm elections are tomorrow (Tuesday, Nov. 8)
  2. 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

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