04/05/2020: Markets were down for the week as the Indices need to re-test the March Lows. If the Markets can hold at or above the March Lows and form a “W” pattern, then the Markets could have a sharp rally back up towards the Green Line. Remember that the Green Line is where the price should be without human emotions (Way Above the Green Line is GREED, Way Below the Green Line is FEAR).
History tells us that Investments eventually return near their Green Lines, The FEAR today has created an opportunity to Buy Investments that are on Sale, so maybe a 10-15% rally up is coming when the FEAR subsides.
The Green Line System captured more quick profits this week on Kroger (KR +10.85%) & NVIDIA CORP (NVDA +5.79%).
The Green Line System is under water on other Investments, and the goal is to EXIT them when the Markets return up near their Green Lines (250-day avgs.) Or when the CNN Fear & Greed Index returns back up near 70. (Now at 21).
Eventually the FEAR will eventually subside, as human emotions are temporary. But the Coronavirus is causing the FEAR, so let’s do some Technical Analysis on the data provided by www.worldometers.info (assuming the data is accurate).
CHINA & SOUTH KOREA are clearly winding down if the data is accurate (4967 active cases remaining total).
IRAN ITALY GERMANY SPAIN New Cases have finally peaked, but many cases remaining. 95% of the active cases world wide are mild.
USA We went from a healthy country to a problem country with the dilemma in New York & New Jersey. Problem countries have peaked in about 21 days instead of 14 days for healthy countries. Today is day 20, so maybe we will peak soon.
FRANCE UK CANADA & INDIA New Cases are still rising, but total active cases remaining is 124,600, compared to New York total of 105,700.
Remember, there are about 30,000 deaths annually in the US from the Flu, and 38,800 annually from car crashes. USA deaths from Covid 19 are currently 9171 with another 8474 serious cases.
If the USA can follow the paths of other countries and have strict quarantines, then Covid 19 could be mostly over in 1-2 months. The FED is max printing and Congress just borrowed $2 Trillion to help American workers and businesses.
The ideal Investment Portfolio today would be to only own the Leaders that are Above the Green Lines. The Plan is to unload weaker position that are currently Below the Green Lines on the rally up.
If you are worried about a Bear Market, the Green Line System bought 2 Inverse Funds this week (SH S&P 500 Inverse Fund & RWM Inverse Small Cap Fund). If these 2 Funds cannot make New Highs or Double Top, then the Markets should be ready for a big rally.
For the week the Dow was down 2.66%, the S&P 500 was down 2.06%, and the Nasdaq 100 was down 1.04%. The Long Term Trend for the Indices is mixed.
The Inflation Index (CRB) was up 3.29 % and is Below the Green Line, indicating Economic Weakness.
Bonds were up 0.62% for the week and are Above the Green Line, indicating Economic Weakness.
The US DOLLAR was up 2.10% for the week, and had a Money Wave Buy Signal last week.
Crude Oil was up 31.75% for the week at $28.34 and GOLD was down 0.51% at $1645.70.
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MONEY WAVE BUYS SOON:
We are currently in 16 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 Buy Signals!
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LONG TERM INVESTMENTS (concentrating more on the Short Term now)
Buy the Leading Investments that are down near the weekly Green Zones.
ADBE ADOBE SYSTEMS INC. Buy when it Closes above $326.99 on High Volume.
ENPH ENPHASE ENERGY Wait for next Daily Green Zone Buy.
SHOP SHOPIFY INC. Wait for next Daily Green Zone Buy.
TSLA TESLA INC. Wait for next Daily Green Zone Buy.
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Click for Portfolio (Open Positions)
Click for Watch List
Click for Closed Positions
NEW DIVIDEND GROWTH PORTFOLIO (please check it out)
ETF Sector Rotation System – New Quarterly Rotation on Apr 1, 2020.
Long Term Strategy for IRAs & 401k Plans:
Alert! Market Risk is LOW (Green 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
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