09/09/2018: Markets were down for the week, as the Indices are coming back down to their Green Zones, for Short Term Money Wave Buys soon. The S&P 500 has faded back down to test the January Highs of 2872 to see if that level becomes new Support.
For the week the Dow was down 0.19%, the S&P 500 was down 0.93%, and the Nasdaq 100 was down 2.93%. The Long Term Trend on the Stock Markets is UP.
The Inflation Index (CRB) was down 1.35% and is Below the Green Line, indicating Economic weakness.
Bonds were down 1.32% for the week and Closed Below the Green Line, indicating Economic Strength.
The US DOLLAR was up 0.36% for the week, and should bounce near the Red Line soon.
Crude Oil was down 2.94% for the week at $67.75, and GOLD was down 0.52% at $1200.
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MONEY WAVE BUYS SOON:
We are currently in 2 logged Open Positions, for the Short & Medium Term. There are 8 Investments on the Short Term Watch List.
Be patient and WAIT for Green Zone Buys!
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LONG TERM TRADES
Most of the longer term favorites below are currently Below their Green Lines, as the Market Internals have narrowed. These tend to do well if they can Bounce up from the Green Lines.
ETFC E*TRADE FINANCIAL Wait for Weekly Money Wave Close > 20.
INTC INTEL CORP. Wait for weekly Close Above the Red Line of $48.79 (50-day avg.)
MU MICRON TECH Wait for weekly Close Above the Red Line of $51.01 (50-day avg.)
TWTR TWITTER, INC. Wait for weekly Close Above the Red Line of $35.00 (50-day avg.)
WTW WEIGHT WATCHERS 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: Kerry writes:
“I am a relatively new member and am curious about the rationale for one of the rules. As I understand it, to qualify as a buy, a security must close below the the Money Wave (slow stochastic) reading of 20 for at least one day; merely dipping below the 20 reading for a part of the day and then breaking out above it that same day is insufficient to qualify for a buy. I am curious about the rationale for that distinction.
Thanks so much in advance,”
ANSWER:
Sometimes the Strongest Investments do not Close on the Green Zone, and take off again. But we need firm Rules to have a System, so we require a Close in the Green Zone.
If many Investments are coming down in the Green Zone together on a Market drop, it is fine to fudge on the Rule (and sometimes better) and Buy the ones that “Tag & Go”.
Just have a Sell Stop Loss Below the trade.
Good trading, and tell your friends!