12/27/2020 Markets were mixed for the week on low Holiday Volume. Many of the major Indices made New Highs but are very over-bought.
The Herd is Buying on expectations that the World Economy will improve dramatically when the Virus is over. The Markets have probably discounted much of the improvement of the World Economy in the future.
Historically the Markets are too far Above the Green Lines to justify a 2:1 Reward / Risk Ratio. So prudent Investors who like to Buy on FEAR should be raising Cash up here. We know from history that Markets stretched Way Above the Green Lines on Greed and Hope will eventually snap back down to the Green Line again.
Lots of Good News on the Markets, and Smart Money should take profits soon on the Good news of another Stimulus Plan.
For the week the Dow was up 0.04%, the S&P 500 was down 0.05%, and the Nasdaq 100 was up 0.02%. The Long Term Trend for the Indices is up.
The Inflation Index (CRB) was down 0.54% and is Above the Green Line, indicating Economic Expansion.
Bonds were up 0.61% for the week, and are Above the Green Line, indicating Economic Weakness.
The US DOLLAR was up 0.37% for the week, and is over-sold.
Crude Oil was down 2.05% for the week at $48.23 and GOLD was down 0.30% at $1883.20.
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MONEY WAVE BUYS SOON
We are currently in 4 logged Current Positions, for the Short & Medium Term. There are 4 Investments on the Short Term Watch List.
Be patient and WAIT for Green Zone Buy Signals!
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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.
AR ANTERO RESOURCES Wait for the next Daily Money Wave Buy Signal.
CRON CRONOS GROUP Buy if it Closes above $9.00 on High Volume.
LAC LITHIUM AMERICAS CORP. Quickly surged up thru the Red Line and Closed up 31.8 %. So we missed it…
RIOT RIOT BLOCKCHAIN Wait for the next Daily Money Wave Buy Signal.
ZM ZOOM VIDEO Wait for Close Above the Red Line.
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Long Term Strategy for IRAs & 401k Plans
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.
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QUESTION: Winter writes ““Don’t take a Loss” confuses me. What does that mean?”
ANSWER: When the Investment has a Money Wave Buy Signal, it should pop up 3-6 % in just a few days.
If it is not popping up well, and the Money Wave > 50, either Get the H out, or Don’t Take a Loss!
Something must be Wrong. There will be plenty more… Raise Cash, and don’t get Stuck! Wait for the next one.
Good trading and tell your friends!
AGL