The Market Leads The News
Price action leads the news, not the other way around.
The last update on TSM had this:
“A reversal away from this area confirms the channel and weights probability to more downside …”
As seen in the chart of TSM, a reversal is what we’ve got.
TSM, Daily Close
Note that volume increased on the reversal; helping to confirm the channel.
If this reversal ‘sticks’ and TSM continues lower, the downside potential is significant.
It’s a no-brainer to assess the world situation as unstable.
It’s exactly during these (once in several generation) events where international borders (for example) like Taiwan and China could potentially change.
Several links of interest on China/Taiwan are below.
China ‘There by tomorrow‘
Tencent shares plunge
Hong Kong … mandatory tests
China mandates ‘zero policy‘
China lockdowns to disrupt supply chains
What could go wrong ?
As Livermore said nearly a century ago … ‘surprises tend to happen in the direction of trend’.
Charts by StockCharts
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