Markets were down in the morning, then weak Buying came in. The weaker Indices are still below the Red Lines (50-day avgs.) for some Medium Term Sell Signals. The S&P 500 fell below the previous Support at 2437, so next Support is around 2408 (see chart above).
Try to Buy Investments that can Hold above their Red Lines next week. The DOW Index, and the Tech Fund are holding up the best.
Crude Oil is down today at $47.40 / barrel.
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:
YY YY INC. Money Wave Buy today. We will not log YY, as it is already up 3% today.
We will “Not Log” trades if the Reward/Risk is not at least 2:1.
Money Wave Buys soon for: FB FACEBOOK INC, FGEN FIBROGEN INC, HRB H&R BLOCK, JD JD.COM, IPI INTREPID POTASH, NFLX NETFLIX INC, RH RESTORATION HARDWARE, SQ SQUARE INC, & VRTX VERTEX PHARM. We will email you when they are ready. Click on WatchList
Emotions are very high now, so please do not Buy unless you are VERY NIMBLE. The Leaders are still Way Above the Green Lines (all Investments eventually return to their Green Lines).
SELLS TODAY:
EXIT AAOI APPLIED OPTO if it is going to Close Below Support of $63.00. (We might Buy again for the Long Term Portfolio).
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. We will “Not Log” trades if the Reward/Risk is not at least 2:1.
Related Post
– JD
How do you calculate the 2:1 Reward/Risk?
Example today: YY could return back up to the High (+$6.77).
Or YY could go back down to Support, or lower ($5.77)
Reward ($6.77) / Risk (5.77) = 1.2 to 1…
Got it, thanks!