04/08/2018: Another rough week in the Markets!
Markets were down up over 1% for the week, as the Indices rallied up near the Red Lines (50-day avgs.) and then sold off. This is very normal for the Markets to trade between the Red Lines and Green Lines, until one of the Lines is broken.
Since the S&P 500 Weekly Chart above is back down in the Green Zone and Tammy is SCARED, Markets should rally soon. This decline is Flushing out those who had to Buy on the Good News in January and in the Red Zone.
If the Markets can hold and bounce soon, we could see a “W” Pattern for the Indices to Bounce near the Green Lines and possibly re-test the Jan Highs.
Try to Buy Investments that are still Above the Red Lines. The Long Term Trend is UP.
Bonds are bearish (Below the Green Line and Low Relative Strength) but have rallied way back up to the Green Line (250-day avg.) on fear of Economic weakness.
The Inflation Index (CRB) is struggling to get back above the 196.36 Break Out level, which shows some weakness with Inflation. The US DOLLAR failed again the Red Line, and is re-testing the recent Lows.
LONG TERM TRADES
The Funds below are currently out of favor and and recent news has cause more weakness. Some are having trouble with nice uptrends. 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:
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 could re-test their Highs from these Over-Sold levels.
Tell your Friends about the Green Line, and Help Animals.