02/26/2017: Markets were up slightly for the week, as the Indices are very over-bought, and are stretched Way Above the Green Line. Eventually the Markets will snap back down to the Green Lines (like they always do) so there should be some Negative news soon. The only unknown, is HOW FAR the Markets will stretch up.
Bonds have been rallying up towards the Green Line, which could indicate that the Economy could actually be weakening (Bonds love slow growth without Inflation). Maybe Bonds are just returning to the Green Line, before the get Slammed again.
Same thing with Commodities… They are Above the Green Line, but the Index still has a low Relative Strength. If the Trump Rally is for REAL, Commodities would historically be Surging higher, and Bonds would Tank. We will see…Steel (SLX) Coal (KOL) & Uranium (URA) are in BULL.
There should always be Investments going up EVERY YEAR that meet the Green Line Rules. Raise some CASH, and wait… there will be some BAD NEWS, and we will be ready to BUY!
MONEY WAVE BUYS SOON: There is only 1 Open Position, but 9 Investments are on the Watch List.
ON DECK to Buy soon: ARRY ARRAY BIO, AXAS ABRAXAS PETE. CENX CENTURY ALUMINUM, CLVS CLOVIS ONCOLOGY, PES PIONEER ENERGY, RSX RUSSIA FUND, SN SANCHEZ ENERGY, URA URANIUM FUND, and XME METALS & MINING FUND. Wait for GREEN ZONE BUYS. We will email or text when they are ready. WATCH LIST
LONG TERM TRADES – We are looking for a good Entry Point for these, which could possible Double:
UGA US GASOLINE FUND Waiting to see if it will hold Above the Green Line.
JJC COPPER FUND Weekly Red Zone. Waiting on a Pull-back.
MDR MCDERMOTT INT’L. Waiting for a Pull-back
URA URANIUM FUND Weekly Red Zone. Waiting on a Pull-back.
Click for Open Positions
Click for Closed Positions
Alert! Market Risk HIGH (Red 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: Costine writes “Thank you so much for your amazing charts.
What is the best vehicle to buy to short the S&P500?
Many thanks and regards.”
ANSWER: It is probably way too early to Short… Yes, the Markets are very Over-Bought, and will return again to the Green Lines. But the next good trade should be when the Leaders come down to the Green Line, and then should bounce back up near the Highs (until they FAIL TO MAKE NEW HIGHS).
When the Markets finally go BEAR, we will be in Inverse Funds like SH (when it meets the Rules).
Good trading, and tell your friends!