The Long Investor

HSI

Added 2024-10-18 08:59:01 +0000 UTC

It never feels textbook when we are in a pull back and waiting for support to come, because doubt creeps in, this is normal and this is your brain protecting you....but ultimately it is a call to action to make a decision: Stick with this or get out of your position.

Every person goes through this during a pull back and when you are faced with this decision, you must draw on the theory, the fundamentals, the macro environment and your judgement.....we won't always get it right but we have a framework in place that protects us +80% of the time.

HSI has given us a clear bounce today between the 0.38 Fib and 0.5 Fib, Wave 4 we want to see hold on the 0.38 Fib but Wave A was harsh so a lower low is usually expected for Wave C then and that is what we got.

Price is now back above the 0.38 Fib within one day of bouncing.

With every bounce, it is only as strong as its pull back to a higher low to reinforce the structure, the bounce may not be complete yet so we will watch for this, but it is a good start and the ADRs we are following are reacting very well in the PM now to this.

China has reduced their lending rates again today and Manufacturing and Growth numbers came in much better than expected.