Most Over-Sold Markets in 2 years!
02/11/2018: Markets were down another 5% for the week, and the S&P 500 almost touched the Green Line on Friday. This is the first correction in 16 months. The major Indices did not bounce at the Red Lines (50-day avgs.) last week, so the re-test of January Highs will normally take longer.
However, Investments have reached the most over-sold level in 2 years, according to the Chart above. Only 18% of the S&P 500 index is still Above it’s Red Line (50-day avg.) The Leaders should have nice bounces from these over-sold levels soon. The Long Term Trend is UP.
Bonds fell as the yield on the Long Term Treasury rose to 3.14%. This rise in rates affects the Mortgage market.
The Inflation Index (CRB) fell this week, as the US DOLLAR bounced off New Lows.
Crude Oil was down 9.55% for the week at $59.20, and GOLD was down 1.62%.
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MONEY WAVE BUYS SOON: We are currently in 8 logged Open Positions, for the Short & Medium Term. There are 9 Investments on the Short Term Watch List, so be patient and WAIT for Green Zone Buys!
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LONG TERM TRADES
The Funds below are currently out of favor, but historically these could possibly Double or more from these lower levels. We are looking for a good Entry Point for these, but need the entire Economy & Inflation to pick up speed:
DBC COMMODITY FUND Relative Strength is back Below 90.
FCX FREEPORT MCMORAN Wait for the next Green Zone Buy on the Daily Chart.
GRPN GROUPON INC. Wait for Break Out above $5.99 on High Volume.
JJC COPPER FUND Wait for the next Green Zone Buy on the Daily Chart.
KOL COAL FUND Wait for the next Green Zone Buy on the Daily Chart.
REMX RARE EARTH FUND Wait for Green Zone Buy on the Daily Chart.
TWTR TWITTER INC. Broke Out Above $25.85. Wait for Daily Green Zone.
UGA US GASOLINE FUND Volume is too low… Break Out Above $33.07.
VALE VALE DE RIO Wait for the next Green Zone Buy on the Daily Chart.
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Alert! Market Risk is LOW (Green Zone). The probability of successful Short Term Trades is higher, when the S&P 500 is down near the Green Line. The Strongest Investments should re-test their Highs from these Over-Sold levels.
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