Timing the October recovery
Signals to time market entry are tracked in chart price behaviour and appear well before public sentiment shifts
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SEPTEMBER lived up to its reputation, helped along by new UK Prime Minister Liz Truss. The key question for October is how to identify when the remnants of the September collapse have vanished, and when an October rebound begins.
The closing index value for October is usually much higher than the opening value. That doesn’t mean the first week in October is the low point followed by a rise. The higher October close may be achieved in just the last few days of the month. October may still carry some substantial falls as the impetus from September slowly fades.
Smart investors will time the market. Yes, you can time the market. Think of this like the way you use lights to cross the road. You do not know the exact time the lights will change, but you do know how to recognise the signal that it’s safe to walk. This is the key to timing the market. Investors are alert for the signal and by watching for the conditions associated with market turns, they are ready to act quickly.
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