07/22/2018: Markets were mixed for the week, as the broad Markets like the New York Stock Exchange are struggling to go higher.
Trump is blaming the Fed on raising short Term Rates. As Technical Analysts, we don’t care “WHY” things happen, but since the Trade War talks began, many sectors of the Markets have weakened. Trump needs to “WIN” soon on Trade or the Economy could slip into a Slowdown based on the Yield Curve.
The NASDAQ 100 Index was able to get back up to the Highs on Friday with 2 of the 5 FAANG stocks leading. For the week, the Dow was up 0.2%, the S&P 500 was up about 0.1%, and the Nasdaq was flat. The Long Term Trend on the Stock Markets is UP.
The Inflation Index (CRB) was down 0.57% and closed Below the Green Line, indicating Economic weakness.
Bonds were down 1.60% for the week but Closed Above the Green Line, indicating Economic weakness.
The US DOLLAR was mixed for the week, and is Above the Green Line.
Crude Oil was down another 3.87% for the week at $68.26, and GOLD was down 0.81%.
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MONEY WAVE BUYS SOON:
We are currently in 6 logged Open Positions, for the Short & Medium Term. Most are now in the Yellow or Red Zones, so please have Sell Stops below them. There are 2 Investments on the Short Term Watch List.
Be patient and WAIT for Green Zone Buys!
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LONG TERM TRADES
The Funds below are correcting down to their Green Lines, but the Relative Strength is remaining high. These tend to Bounce nicely when the weekly Money Wave crosses up > 20.
IOVA IOVANCE BIOTHERA. Weekly Buy Signal but IOVA will not be logged, as the BioTech Index is back on the Highs
FCAU FIAT CHRYSLER Wait for weekly Close Above the Red Line of $20.23 (50-day avg.)
IBKR INTERACTIVE BROKERS Wait for Weekly Money Wave Close > 20.
INTC INTEL CORP. Wait for weekly Close Above the Red Line of $52.43 (50-day avg.)
SPLK SPLUNK INC. Wait for weekly Close Above the Red Line of $106.41 (50-day avg.)
VALE VALE DO RIO Wait for weekly Close Above the Red Line of $13.24 (50-day avg.)
VLO VALERO ENERGY Wait for Weekly Money Wave Close > 20.
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Click for Portfolio (Open Positions)
Click for Watch List
Click for Closed Positions
Alert! Market Risk is High (RedZone). The probability of successful Short Term Trades is better, when the S&P 500 is down near the Green Line.
Tell your Friends about the Green Line, and Help Animals.
QUESTION: Steve writes ” What is the deciding factor for you to say “Caution! Way above the Green Line? Thank you.”
ANSWER: Hi Steve, Way Above the Green Line means that if you Buy there, you will probably have a “Sick Feeling” when the Investment returns to the Green Line.
Good trading, and tell your friends!