The Markets can’t decide if the Economy is getting stronger or weaker… The recent Bond bounce, and the Financial & Commodity drop shows weakness. The Economy needs to show faster growth for higher Interest Rates and Inflation, which are indicators of a robust Economy.
The major Indices should go back up to re-test the recent Highs, but last week’s Low of 2322 must hold on this move down.
The Reward / Risk ratio of investing now is poor, so please do not Buy unless you are VERY NIMBLE, as the Leaders are still Way Above the Green Lines.
Money Wave Buys soon!
The Following Investments will probably have a Money Wave Buy Signal
(Slow Stochastic Closing > 20) on today’s Close.
BUYS TODAY: NONE TODAY
ON DECK to Buy soon: AAOI Applied Optoelectronics, CLVS CLOVIS ONCOLOGY, EWP SPAIN FUND, IMMU IMMUNOMEDICS INC, MBT MOBILE TELESYSTEM, and SAN BANCO SANTANDER. Please click on WatchList We will email when they are ready.
SELLS:
EXIT LUK LEUCADIA FINANCIAL if it is going to Close Below the Pink Line of $25.93.
EXIT BAC BANK OF AMERICA if it is going to Close Below the Pink Line of $23.35.
EXIT NFLX NETFLIX INC if it is going to Close Below the Pink Line of $145.01.
EXIT XLF FINANCIAL FUND if it is going to Close Below the Pink Line of $23.63.
Click for PORTFOLIO (Open Positions)
Click for CLOSED POSITIONS
Many like to Buy the day before, near the Close, if the Money Wave is going to create a Buy Signal (Closing > 20).
Don’t Buy if the Investment has already popped up too much. Money Wave Buys are usually good for a 3-6 % move in a few days.
About 1/3 of the time, the Money Wave Buys will result small losses, so please use a Sell Stop Loss after all Buy orders.
AAOI is down over 9% today with very heavy volume. Any thoughts as to what’s going on?
Maybe Flushing Tammy out, who bought at $60, and then coming down so we can dip in if it bounces near the Red Line?
AAOI Chart
Sounds like a plan! Looks like there’s going to be an opportunity soon… Just strange to see the heavy volume on a down day.
Yes, High Volume is Bearish!