11/11/2018: Markets bounced up again for the week, but now the Indexes are over over-bought on the Short Term. The S&P 500 is back Above the Green Line, but failed at the Red Line (50-day avg.). Normally the Markets would dip back down soon to re-test the recent Lows. If the Selling is weak, then the Strongest Leaders that are holding Above the Green Line + Above 90 Relative Strength should go back up to re-test the September Highs.
Investments that are strugging Below the Green Line should probably be Sold on the next rally.
Money does not seem to be leaving the Markets, just rotating into Defensive Investments like XLP Consumer Staple Fund and XLU Utility Fund.
For the week the Dow was up 2.84%, the S&P 500 was up 2.16%, and the Nasdaq 100 was up 1.06%. The Long Term Trend on the Stock Markets is UP.
The Inflation Index (CRB) was down 2.00% and is Below the Green Line, indicating Economic Weakness.
Bonds were up 1.21% for the week and are Below the Green Line, indicating Economic Strength.
The US DOLLAR was up 0.31%, but is currently over-bought.
Crude Oil was down 4.57% for the week at $60.18, and GOLD was down at $1208.60.
___________________________________________________________________________________________
MONEY WAVE BUYS SOON:
We are currently in 6 logged Open Positions, for the Short & Medium Term. There are 2 Investments on the Short Term Watch List.
Be patient and WAIT for Green Zone Buy Signals!
______________________________________________________________________________________________
LONG TERM TRADES
The Long Term List has become large, and if the Investments below can Bounce up off the Green Line with Above 80 Relative Strength, some could re-test their Highs.
AEO AMER. EAGLE OUTFITTERS Wait for weekly Close Above the Red Line of $22.84 (50-day avg.)
ARWR ARROWHEAD PHARMA. Wait for weekly Close Above the Red Line of $14.75 (50-day avg.)
CRM SALESFORCE.COM Wait for weekly Close Above the Red Line of $143.36 (50-day avg.)
CVNA CARVANA CO. Wait for weekly Close Above the Red Line of $49.00 (50-day avg.)
FDN INTERNET FUND Wait for weekly Close Above the Red Line of $131.36 (50-day avg.)
FOSL FOSSIL GROUP Place Buy Stop Order above $24.28 on the Close.
FTNT FORTINET INC. Wait for weekly Close Above the Red Line of $78.81 (50-day avg.)
HRTX HERON THERA. Wait for weekly Close Above the Red Line of $30.89 (50-day avg.)
QQQ NASDAQ 100 Fund Wait for weekly Close Above the Red Line of $174.65 (50-day avg.)
URBN URBAN OUTFITTERS Place Buy Stop Order above $41.77 on the Close.
WWE WORLD WRESTLING Wait for weekly Close Above the Red Line of $78.38 (50-day avg.)
___________________________________________________________________________________________
Click for Portfolio (Open Positions)
Click for Watch List
Click for Closed Positions
Alert! Market Risk is MEDIUM (Yellow Zone). 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: David writes “Many trading pros/teachers say do not trade below the 50 day moving average. I know you strongly believe the high technical ranking will overcome this and you advocate trades breaking out of Green Zone that are often well below the 50 day ma.
Could you please comment on your view about trading below the 50ma?”
ANSWER: Hi David, yes it is best to own Investments above the 50-day avg., because they are the Strongest. Investments that fall below the 50-day can return back up to the Highs, but it normally takes longer. (and the percentage moves can be larger).
So Nimble Traders try to own Above the 50-day. It is more about deciding on how long you want to own a position.
Good trading, and tell your friends!