This is an update to our previous note dated 28th September ’21, titled Sharing a Textbook example — TPMART Index.
In our previous note, we suggested that TPMART would likely experience a large three waves correction. We also suggested that if one were not already short it then, that we should await the completion of a B wave bounce before engaging it on the short side for a final C wave down move.
ATEC believes, as we observe the Japanese shipping index, that it has likely completed the B wave bounce, and that we can now look for a C wave move to levels below 600 from here.
We understand the narrative around shipping backlogs. We understand that container freight rates are still at decade-highs. But we also understand that sentiment moves in ebbs and flows.
ATEC will short it with a stop at recent highs.
Good luck out there.