How will the stock market act in the next month? 7.2.3 to 15

[poeticwalking]

Been messing with some questions finally that are not so romantically focused. The stock market has been absolutely bonkers lately compared to the economic situation in the US- millions still unemployed, COVID community spread all over, a lot of people not complying with public gatherings, masks etc. and the market is just going up, up, up.

Got 7.2.3 to 15.
To me it seems like more of the same for now- the stock market is just out of touch with reality. Success in 3s- something goes up 30%? 3 times? 3 different companies? IDK.
Seems like a lot has to do with the leaders- currently the top few tech stocks make up 20-25% of the SP500.
Line 3 seems to imply volatility? A lot of companies are overvalued right now, and of course the tech stocks aren't the classic tried and true, the dividend kings or whatever. Carting corpses tho, yikes. A lot of dead in the water companies just being swept along?

Changing to 15- things will just keep plugging along as they have been? I don't know that this shows a big crash or correction just yet, though we are due one for sure.

I've been waiting to time the market but maybe this is really a reminder to dollar cost average (just put in x amount on a regular schedule into retirement fund) and also just to keep to set allocations- no going all in on something.

Thoughts?

 

[Viru10]

Looking at historical data for this, we can see the S&P 500 from Aug 1st to Oct 4th. This particular index went up by about 300 points but wiped all those losses by September 24th, then regained some and ended up about 100 points higher.

I just cast 7.2.3>15 for a completely unrelated topic but found this interesting nonetheless. It looks like "carts corpses" might be to do with that brief rally during Sep 2020 as the index crescendos over 300 points higher but then drops and loses all those gains on Sep 23rd 2020. It does regain some and make a modest profit by the start of October.

So perhaps the casting indicates that particular correction between Sep 1st's peak and the 23rd's loss. I'm too lazy to do the math right now in regards to the 30% or 3's but I gather that if you remained centered during this period and perhaps even bought the dip you would be fine.

I think line 2 may indicate not to lose one's center whilst the army (broader market) carts corpses. The gains will be modest (15).

This is just looking at the S&P though, I'm not particularly market-savvy when it comes to individual companies.