2/13/2022 Markets were lower for the week as the Indices are going back down to re-test the January Lows. The complete rally up off the Green Lines for the DOW 30 and S&P 500 Indices back up to the Highs should have 5 Waves (3 up waves and 2 down waves). If the current Wave 2 down does not go as low as January, we could have a powerful Wave 3 rally up soon. However, the weaker Small Cap and NASDAQ 100 Indices are still Below the Green Lines and might not rally as much.
Bonds have become very over-sold on Fears of the FED tightening, so we could see a rally in Bonds soon. This would cause Long Term Interest Rates to fall for a while, which Stocks should like. And Commodities are currently over-bought, so they correct down soon which could also be bullish for Stocks.
If you continue to Follow the Green Line System, your Money should flow into the Strongest areas and your account value should be able to grow in both Bull and Bear Markets.
There has been plenty of action on the Day Trading Scrolling Charts.
We have not had many intra-day Stocks Alerts lately as the Volume has been too Low on Buy Signals. We like to see High Volume on rallies.
For the week the Dow was down 1.02%, the S&P 500 was down 1.84%, and the NASDAQ 100 was down 3.06%. The Long Term Trend for the Indices is up.
The Inflation Index (CRB) was up 0.68% for the week (a New High) and is Above the Green Line, indicating Economic Expansion.
Bonds were down 0.55% for the week, and are Below the Green Line, indicating Economic Expansion.
The US DOLLAR was up 0.62% for the week and is Above the Green Line.
MONEY WAVE BUYS SOON
Be patient and WAIT for Green Zone Buy Signals!
LONG TERM INVESTMENTS (many Large Caps no longer have 80 Relative Strength required.)
Updated Top 100 List Feb 1, 2022
Dividend Growth Portfolio
ETF Sector Rotation System
Dogs of the DOW System
Long Term Strategy for IRAs & 401k Plans
CNN Fear & Greed Index
Scrolling Stage Chart Investing Charts
Alert! Market Risk is MEDIUM (Yellow 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: Steve V. writes “Do you do both long and short positions or does someone just invert the rules in a down market?”
ANSWER: Yes, invert the Rules to Sell Short (Below the G L, Below 10 R S, Dropping below 80 on the Money Wave).
We will wait until the Market is in a Bear (below the Green Line), and not Short this recent Correction back down to G L.
Once the Market is BEAR, we will mainly do Inverse Funds, as most investors don’t understand Shorting…
The Leaders should have nice pops up if they hold above the G L after this Correction, and we don’t like to Sail into the Wind (with FED Printing).
Good trading and tell your friends!