02/04/2018: Markets were down 3.5 – 4% for the week, as most of the Earnings are out, and profit Taking came in on the “Good News”. Most of the Indices are back down in the Green Zone, so the Markets should re-test the Highs soon if they can hold above the Red Lines (50-day avgs.) The Long Term Trend is UP.
Bonds fell as the yield on the 10-year Treasury rise to 2.85%. This rise in rates affects the Mortgage market.
The Inflation Index (CRB) is slowly breaking out of a Base, as the US DOLLAR is near New Lows.
Crude Oil was down 1% for the week at $65.50, and GOLD was down 1.10%.
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MONEY WAVE BUYS SOON: We are currently in 2 logged Open Positions, for the Short Term. There are 9 Investments on the Short Term Watch List, so be patient and WAIT for Green Zone Buys!
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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.
FCX FREEPORT MCMORAN Wait for the next Green Zone Buy on the Daily Chart.
GRPN GROUPON INC. Wait for Break Out above $5.99 on High Volume.
JJC COPPER FUND Wait for the next Green Zone Buy on the Daily Chart.
KOL COAL FUND Wait for the next Green Zone Buy on the Daily Chart.
REMX RARE EARTH FUND Wait for Green Zone Buy on the Daily Chart.
TWTR TWITTER INC. Broke Out Above $25.85. Wait for Daily Green Zone.
UGA US GASOLINE FUND Volume is too low… Break Out Above $33.07.
VALE VALE DE RIO Wait for the next Green Zone Buy on the Daily Chart.
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Click for Portfolio (Open Positions)
Click for Watch List
Click for Closed Positions
Alert! Market Risk is MEDIUM (Yellow 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: Tom writes “Weinstein’s book features a thirty week MA. Why does Above the Green Line use a 250 Day Moving Average?”
ANSWER: Hi Tom. The 250 day ema has been back tested and produces fewer “whipsaws” than the 30 week, or the 200-day.
Good trading, and tell your friends!
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