3 Charts You Need to Watch
This is what's on the radar.
The correction we're seeing in the major indexes is perfectly normal for this time of the year, and setting us up for a November-December rally to finish up 2023.
That would be the normal path for equities according to seasonal trends. And so far this year, and this entire presidential cycle for that matter, the stock market has moved very closely with those seasonal trends.
I see little reason to start to bet against that now.
But if these ratios above start to fall apart, it would be new evidence that perhaps this correction will be more than just that.
And I'm open-minded to it.
There's just not any evidence yet suggesting this is how it will turn out.
Quite the opposite, in fact. I'm pretty impressed with how well these 3 ratios have held up so far.
We're staying patient here, but looking to put money to work over the coming months setting up for a year end rally.
What are you doing?
How do you see it?
JC