MARKETS WILL BE CLOSED ON MONDAY FOR PRESIDENT’S DAY HOLIDAY
2/20/2022 Markets were lower again for the week as the Indices are going back down to re-test the January Lows. Investor’s FEAR is the now the highest since 2016 according the Investor Sentiment Chart above. This means that most investment newsletter writers are predicting that the Stock Market is now in a Bear Market (down). We will use Inverse Funds in the next Bear Market, but none of them are in Bull Markets, and they currently break the Green Line Rules. We don’t predict, we follow the Money and history. Usually when most of the newsletter writers agree, Smart Money will do the opposite and wait for a bounce up.
If the Market bounces up soon, the complete rally up for the DOW 30 and S&P 500 Indices (CHART) back up to test 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 the January low, 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.
Many are worried that the FED is going to tighten, or raise short term Interest Rates in March. Probably, but tightening should slow down inflation and long term T-Bonds should like that, and then rally back up near their Green Lines. This would normally cause long term Interest to DECLINE, which should improve stock prices, and hurt Commodities.
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 1.67%, the S&P 500 was down 1.41%, and the NASDAQ 100 was down 1.60%. The Long Term Trend for the Indices is up.
The Inflation Index (CRB) was up 0.21% for the week (a New High) and is Above the Green Line, indicating Economic Expansion.
Bonds were down 0.01% for the week, and are Below the Green Line, indicating Economic Expansion.
The US DOLLAR was down 0.05% 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 LOW (Green). The probability of successful Short Term Trades is better, when the % of stocks above the 50-day avg. is below 20.
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