05/10/2020 Markets were up for the week as the S&P 500 Index needs to push up Above the Green Line for this rally from the March Lows to continue. Many are confused as to why the Markets have recovered so well with very high Unemployment and a slower Economy. Two reasons: 1.) Massive FED Printing and 2.) No Alternative Investment (NAI).
If the Economy improves, then historically Bonds would sell off and the lower prices on Bonds would make them more competitive with Stocks. Also with all of the FED Printing, Inflation could finally return and confirm why Gold and Gold Mining Funds (GDX) are making New Highs.
This week many Leaders popped up out of the Green Zones and bounced. These Leaders need to make New Highs soon for this rally to continue. Some Leaders are not bouncing well and the Volume is low. That could be a warning sign that Money is drying up, as most Weekly Charts are back up in the Red Zones (probably too late to Buy after a 30 % bounce off the March Lows).
The S&P 500 has retraced back up 62% of the decline from January (Fibonacci Retracement info). A Fibonacci retracement strategy can point to a possible correction or reversal based on human behavior.
It still looks like the weaker Indices (DOW 30 Index, Small Caps, Transports, & NYSE) could be doing an A-B-C Correcting rally back up from the March Lows. These Investments that are still Below the Green Line could drop again. Maybe unload any weaker Investments that you have that are still Below the Green Line, so you will have Cash to Buy the Leaders on pull-backs?
For the week the Dow was up 2.56%, the S&P 500 was up 3.41 %, and the Nasdaq 100 was up 5.71 %. The Long Term Trend for the Indices is mixed.
The Inflation Index (CRB) was up 6.05 % and is Below the Green Line, indicating Economic Weakness.
Bonds were down 2.36 % for the week and are Above the Green Line, indicating Economic Weakness.
The US DOLLAR was up 0.76 % for the week.
Crude Oil was up 32.31 % for the week at $26.17 and GOLD was up 0.76 % at $1713.90.
_____________________________________________________________________________________________
MONEY WAVE BUYS SOON:
We are currently in 7 logged Open Positions, for the Short & Medium Term. There are 4 Investments on the Short Term Watch List.
Be patient and WAIT for Green Zone Buy Signals!
______________________________________________________________________________________________
LONG TERM INVESTMENTS (Most of the Leaders are back up in the Weekly Red Zones.)
Buy the Leading Investments that are down near the Weekly Green Zones.
AUY YAMAHA GOLD Wait for next Daily Green Zone Buy Signal. All time High is $18.50.
GDX GOLD MINING FUND Wait for next Daily Green Zone Buy Signal. All time High is $62.
KALA KALA PHARM. Wait for next Daily Green Zone Buy Signal. (Volume was not High last week on break out.)
______________________________________________________________________________________
Click for Portfolio (Open Positions)
Click for Watch List
Click for Closed Positions
Dividend Growth Portfolio (we are now posting a Dividend Calendar for the entire portfolio to assist with planning purposes).
ETF Sector Rotation System – New Quarterly Rotation was on Apr 1, 2020.
Long Term Strategy for IRAs & 401k Plans:
Alert! Market Risk is MEDIUM (Yellow Zone). The probability of successful Short Term Trades is better, when the % of stocks above the 50-day avg. is below 20.
Tell your Friends about the Green Line, and Help Animals
___________________________________________________________________________________________
QUESTION: Omar writes: “Hello guys. I am new to your website and want to know where I can get analysis for a special stock or commodity?”
ANSWER: HI Omar. Here is a link to Chart your existing investment positions: https://abovethegreenline.com/chart/
Here is another video for using Daily emails: https://youtu.be/v_Uy6jh2r24
And the Rules.
Good trading and tell your friends!
AGL