2/7/2021 Markets were sharply higher for the week as the Indices had a normal pop up off the Red Lines (50-day avgs.) Leaders were down in the Green Zones last week and are now quickly back up in the Red Zones. Some of the major Indices made New Highs this week but the Volume was low and not impressive. Many Leaders have not made New Highs this time up, and the FAANMG have all lost momentum with long term Relative Strength now below 80.
For the near term, most Investments are very over-bought and are Way Above the Green Lines. This is because most see more Gov’t. Stimulus, improving Virus from vaccines, and FED Printing (Lots of GOOD NEWS). But we like to BUY on BAD NEWS, so conservative Investors should WAIT… Markets will return to the Green Lines.
Many are not concerned about taking profits in the Markets as long as the FED is continuing to Print aggressively. But there is a cost to massive Printing, as Treasury Bonds are already down 14 % from last year’s High. The Inflation Index (CRB) is up 79 % from last year’s Low, and the Interest Rate on T-Bonds has doubled from 0.85 % to 1.97 %. Watch what Interest Rates do when the Virus winds down and the World economy improves! This should eventually force the FED to stop Printing (probably much sooner than expected).
Completed Trades this week:
AES AES CORP. Feb 5 Target Hit at $27 for a 10.7 % Gain. This trade was not logged.
F FORD MOTOR CO. Feb 5 Target Hit at $11.75 for a 8.65 % Gain. This trade was not logged.
FCX FREEPORT COPPER Feb 5 Target of $31 was Hit for an 11.55 % Gain. This trade was not logged.
GM GENERAL MOTORS CO. Feb 5 Target Hit at $55 for a 8.5 % Gain. This trade was not logged.
IWM SMALL CAP FUND Feb 4 Target Hit at $217 for a 3 % Gain. This trade was not logged.
SMH SEMICONDUCTOR FUND Stopped Out for a 0.54 % Loss. This trade was not logged.
TAN SOLAR FUND Stopped Out for a 0.85 % Loss. This trade was not logged.
For the week the Dow was up 3.91%, the S&P 500 was up 4.77%, and the Nasdaq 100 was up 5.34%. The Long Term Trend for the Indices is up.
The Inflation Index (CRB) was up 4.13% for the week and is Above the Green Line, indicating Economic Expansion.
Bonds were down 2.50% for the week, and are Below the Green Line, indicating Economic Expansion.
The US DOLLAR was up 0.45% for the week.
Crude Oil was up 8.91% for the week at $56.85 and GOLD was down 2.02% at $1813.00.
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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.)
Currently very few Leading Investments that are down near the Weekly Green Zones. Caution.
CBAY CYMABAY THERA. Buy if it Closes $6.67 on High Volume.
FDX FEDEX CORP. Buy if it Closes above $258.34 on High Volume.
MJ MARIJUANA FUND Wait for the next Daily Money Wave Buy Signal.
PLG PLATINUM METALS GROUP Volume was not High on the Daily Money Wave Buy Signal.
ZM ZOOM VIDEO Closed above $404.44 but the weekly Volume was not High. This trade was not logged.
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