08/16/2020 Markets were up slightly again for the week as the S&P 500 Index is only 0.2% from the All Time High in Feb. There would normally be plenty of Sellers up around the Feb Highs (Resistance), so a pullback down to the 50-day average or below could create a “Cup & Handle” Pattern back up. Or the Markets could be forming a massive “Double Top” of the 11 year Bull Market (Bearish). We will have to wait and see.
The biggest change this week was that the Long Term T-Bonds dropped 3.94% this week, so the Interest Rate rose from 1.23% Yield to 1.44% Yield (+17.3%) in a week. Normally a stronger Economy would normally cause Long Term Interest Rates to go up (Bonds would Sell off). Rising Long Term Interest Rates could hurt many industries like Housing.
Those hoping for a big rally up from here will probably be disappointed. It would be healthier for the Markets to pull- back 5% or more, but the Markets seem to be waiting on more Covid Stimulus Money and then Sell off on the Good News. The PENNY STOCK WATCH LIST
has many Green Zones Buy Signals soon that are 50-80% off the recent Highs, as many Buyers seemed to have temporarily run out of Stimulus Money.
We like to Buy Investments that have recently made New Highs, on pullbacks. These are NASDAQ 100 (QQQ), Semiconductor Fund (SMH), BioTech Fund (XBI), Internet Fund (FDN) & Retail Fund (XRT), but they are currently over bought (so we wait for pullbacks). Gold Miners (GDX), Gold Fund (IAU), and Silver Fund (SLV) are pulling back now.
For the week the Dow was up 1.89%, the S&P 500 was up 0.64%, and the Nasdaq 100 was up 0.25%. The Long Term Trend for the Indices is up.
The Inflation Index (CRB) was up 1.60% and is Below the Green Line, indicating Economic Weakness.
Bonds were down 3.94% for the week and are Above the Green Line, indicating Economic Weakness.
The US DOLLAR was down o.20% for the week and is Below the Green Line.
MONEY WAVE BUYS SOON
Be patient and WAIT for Green Zone Buy Signals!
LONG TERM INVESTMENTS (Most of the Leaders are back up in the Weekly Red Zones.)
Buy the Leading Investments that are down near the Weekly Green Zones.
Dividend Growth Portfolio (we are now posting a Dividend Calendar for the entire portfolio to assist with planning purposes).
ETF Sector Rotation System – New Quarterly Rotation was on June 30 & July 1, 2020.
Alert! Market Risk is HIGH (Red 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
QUESTION: Boruch L. writes : A question please, at about 3:45 PM I get an email that will list buys a/o sells that day. Is there any way I could know about the buys or sells as they occur in real time? Thanks,
ANSWER: We currently have 1 email going out Daily, the Money Wave Avert! which is sent between 3:40 -3:50 EST.
We are sending out some Day Trading Tweets on Twitter @AboveGreenLine on Twitter