01/02/2017: Markets were down about 1% for the week, as the weaker Indices are finally dropping down towards their Red Lines (50-day averages)… which should create a nice Buying Trade back up.
Many of the Leading Funds are back down in the Green Zones, and we are waiting on Buy Signals (Money Wave Closing up > 20 and out of the Green Zone).
The Semiconductor and Financials are the 2 Strongest Sectors, which usually come down the least… They should re-test the recent highs soon.
The US Dollar and Stock Markets are Way Above the Green Line. Bonds and Gold are Way Below the Green Line. Since all Investments RETURN to the Green Line, expect some weaker or negative news about Politics or the strength of the Economy early next year. We don’t use fundamental news for analysis, but many do… and are mystified by our forecasts. But we don’t predict. We let the Green Line “Tell Us”.
Please view the WATCH LIST for pending Money Wave Buys.
Money Wave Buys Soon: AAL AKS AMAT ECA IWM OIH SMH X & XLF
Wait for Money Wave Buy Signals. We will email you when they are ready.
Click for Open Positions
Click for Closed Positions
Alert! Market Risk HIGH (Yellow Zone). The probability of successful Short Term Trades is lower, when the S&P 500 is Way Above the Green Line. Even the Strongest Funds can get chopped up. Either take quick gains from Money Wave Pops, or STAY IN CASH & WAIT for a larger correction.
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Tell your Friend about us, and HELP ANIMALS.
QUESTION: Mark G. writes “I’ve been following your trades for couple of months now and so far love the system. Some of your recent analysis had Reward/Risk criteria and I wonder if you have definition of poor Reward/Risk documented somewhere on the site.”
ANSWER: Thank you for writing, Mark.
Reward / Risk should be at least 2:1 on every trade. If you Buy an Investment at $12, for a re-test of Highs at $14, the Reward potential could be $2, or 16.7%. If you have a Stop at $11.5, you are risking $0.50. So Reward / Risk is $2 / $0.50 = 4:1 odds… EXCELLENT!
We will add your Question to our FAQ Page.