Signs of a possible correction for stock markets

The last week has been quite important for markets, as the bullish trend started on late March 2020, driven by the giant tech companies of Nasdaq, showed a first, sharp flush.
It was inevitable, and I would say that at this point it has been even healthy: with sugh high valuations of some stocks, I would have felt more and more uncomfortable in keeping big long positions.
With this drop, valuations are realigning to more realistic profits expectations, and a more solid bullish phase could start again.
Truth to be told, we had just one really negative day, while Friday almost recovered intraday losses.
It means that

• either markets could continue with growth like nothing happened,
• or they could drop more on next week and deliver September as a negative month, after 5 months of amazing returns for investors.

I sincerely prefer the second option: a larger drawdown of markets (pushing the HST model to Cash with just an additional -2% to pay for Nasdaq) would put us in the best position for another period of terrific gains in Autumn 2020, or whenever it will be.
Since Presidential elections are close, I think that also new stimula or good news from medicine will not come too late.

HST virtual investments

Let's say some words about the HST virtual investments, especially the leveraged variant HSTv2 which is suffering a -18.12% from the top touched on Sept-02.
We all know that markets drop much faster than they rise, and this flush was even faster.
But let's look at the bigger picture: HSTv2 lost 18% in two days, and could lose another 5%, before the model goes to Cash during next few days.
We would be -23% down from recent tops, but after all, we would be at the levels we've achieved on 15-17th August 2020 (just 3 weeks ago!), which is +67% from Jan-01-2020.

But, being the model positioned to cash, we should not go down much more and we could benefit a final bull leg by the end of 2020.

Worst case scenario

is that a major bear market has just started and it will last for months. In taht case we could lock-in our profits and be prepared for huge potential gains of next bull market, likely in 2021.

We suggest members to pay attention to our daily signal on Private Telegram Channel during next days, as the timing of our next trading moves could be very important and determinate the performance of last part of 2020.

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