07/30/2016 Weekly Commentary: Markets were mixed for the week, but the S&P 500 is trying to hold above the Pink Line (10-day avg.). The Volatility Index is Below $13, which is NOT a good time to expect a Market rally.
The S&P 500 should drop down soon to test Support around 2130. Then it should have another bounce back up to re-test the current Highs. Bonds must make Higher Highs soon, or they will correct.
Gold & Gold Miners bounced off their Red Lines, and MUST make new highs soon to avoid a correction.
Crude Oil is going down to re-test the February Lows… Oil Stocks are not dropping much, telling us Oil could be bottoming soon.
Current Open Positions We sold NGD on Friday for an 18% gain in 3 days. Many Open Positions are in the Red Zones, so we have set tight Sell Stops. Please check here.
Money Wave Buys on Friday for NTDOY & OKE.
Many Funds are having trouble staying Above 90 Relative Strength.
When Markets are tired like they are now, either take quick gains from Money Wave Pops, or STAY IN CASH & WAIT for a larger correction.
Excellent commentary and charts and the recent picks have done very well. I noticed though that you said not to buy stocks when the VIX is under 13 and now it’s at 11.87. Do you mean not to buy stocks as longer swing trades?
Thank you! From the historical Chart, when the VIX > 25, the Herd is worried and buying Put Options… The Professionals recognize this and BUY!
When the VIX < 13, the Herd is feeling over-confident and buying Call Options. Professionals Short the Market.