12/17/2017: Markets were higher for the week, with the Dow and the S&P hitting all-time highs and gaining about 1% each for the week. Stocks jumped after changes were made to the tax reform bill and Markets are expecting the votes to pass the bill next week.
The Federal Reserve raised the Fed Funds rate a quarter-point as expected.
Please be aware that the S&P 500 has not RETURNED to the Green Line in over a year, as Hope and Confidence are very high. Please have some Cash available when the Markets return to the G L.
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.
GRPN GROUPON INC. Wait for Break Out above $5.99 on High Volume.
JJC COPPER FUND Relative Strength has dumped, and Volume is Low.
KOL COAL FUND Closed above $15.44, but the Volume is poor so holding off.
LL LUMBER LIQUIDATORS Relative Strength is Below 90.
REMX RARE EARTH FUND Wait for Green Zone Buy on the Weekly Chart.
TWTR TWITTER INC. Wait on Break Out Above $25.25.
UGA US GASOLINE FUND Volume is too low… Break Out Above $33.07.
VALE VALE DE RIO Wait for Break Out above $11.72 on High Volume.
Alert! Market Risk is HIGH (Red Zone). The probability of successful Short Term Trades is lower, when the S&P 500 is Way Above the Green Line. Even the Strongest Funds can get chopped up. Either take quick gains from Money Wave Pops, or STAY IN CASH & WAIT for a larger correction.
Tell your Friends about the Green Line, and Help Animals.
QUESTION: Kerry writes: “I am curious about your thinking on TRXC in view of its recent market movement and transfer to the long term list. It seems that there might be something that you particularly like about this security in spite of its continuing price declines. I wonder if you could explain that to me. I am not arguing or questioning the process—just interested in understanding it.”
Thanks so much in advance.
ANSWER: Hi Kerry. Usually when an Investment goes up on HUGE Volume and High Relative Strength, Tammy will Buy on the Good News (at the top).
Smart Money SELLS! Then the Investment will slowly fade back down toward the Green Line on low Volume… Normally the Investments will try the Highs again, so Smart Money will buy when Tammy is selling… The hard part is picking the BOTTOM… If you had bought at $4.50 in Oct., you would probably be Blowing Out of it now with a HUGE Loss.
TRXC went up HUGE in 4 days on High Volume in Oct. (called Impulse Wave). Now it is Correcting slowly on Low Volume (Correcting Wave) but still has 98 Relative Strength. The previous Money Wave Buy Signal was just too early…
Today’s Volume is low, probably flushing out all of the WEAK Hands, so Smart Money can Accumulate. TRXC CHART