automatic investment system

the chart shows $S&P 500 Index (.SPX.US)$ in pnf with $USD (USDindex.FX)$ blue line $U.S. 2-Year Treasury Notes Yield (US2Y.BD)$ orange line. spx bounced off low of 3491.58 because of previous peaks at 3525 region serving as support. this support will be tested again and again to see if it breaks or holds. if it holds, a new rally will begin but what's there to rally about? Santa is coming to town? most likely to cover gaps at 4218.7, 4083.67, and 3739.22 before retreating down to make new lows or rally when fed starts to cut rate in 2024.

if the support at 3525 breaks then the next support is 3375 and 3300 range. that will be another 2 to 4% drop.

us2y will keep making new highs because of fed unwinding balance sheet. hence the probability of breaking support would be higher. but before that us2y should retreat first for spx to cover the gaps at the aforementioned points before crashing down.
these are difficult times. this brings to mind a book i read 16 years ago before i started investing.

"How to make $1,000,000 in the stock market--automatically" by Robert Lichello

it was also the first time i finished a book in a day. now you can read it online for free. in it is a strategy of investment i still use today.

during bear markets, it is easy to run out of 'bullets', capital. his strategy is to only buy the amount of shares equivalent to the amount of paper loss. for example, if you incurred a paper of 1000 having invested 10,000, you add 1000 worth of shares. for every 10% drop, you only add the amount of paper loss. this way you will have a lot of bullets left when the stock market keeps dropping.

invest 80% maximum in a bull market and 20% reserves. take profit at every 10% intervals. by the time a bear market begins, you would have taken enough profit for bargain hunting when stocks drop.

this strategy only applies to bellwether stocks like aapl, amzn, msft etc and not stocks like bbby, amc, gme where fundamentals are weak.
personally, i would prefer to hold individual stocks instead of etf or funds.
bon weekend et bon courage