Be fearful when others are greedy and be greedy when others are fearful- Nasdaq 24 aug

Although there are times when this Buffett quotes hold true, there are times when we have to be fearful with the others. The times when we have to be fearful is if the people in charge lose control over the market. To be honest we do not think so, but we will let the price action be our guide. If you were doing the press conference, then. why not have the conference in the morning rather than the end of the session at 2pm. Why create more uncertainty for an extra 5 hours before doing the conference. The answer lies in algorithmic theory. At Muffett investments, we are closely watching the market close over the next few days and particularly today. The two hours of trading today after Bessent speech and the next two days and also very importantly we will be watching the close of the week. We can have a long tail(pinbar) but we should have a positive close (green candle). if that happens, we maintain the bullish bias. we slowly start adjusting the positions from tomorrow onwards depending on the price action.

We are going to keep this one short. The 4 hour chart shows the 2 std deviation and 4 standard deviation targets, but for a bullish bias, the price needs to close higher after Bessent speaks. To us it suggests that the market’s stability is still under control. If we close below but manage to close above for the week then also we know that the market stability is under control. If we close lower for the week, then we have lost control and everyone rushes for the exit and there will be huge airpockets which means big moves down (all from passive investing inefficiencies) . so it is better to be fearful than be sorry.

we have 10% cash and we have some gold exposure but this will not be enough. we need to raise more cash and trim the riskiest investments off.

All analysis done in good faith and not investment advice

May the Lord God be with you and guide you.