03/29/2020: Markets were up sharply for the week as the Indices bounced up towards the Green Lines. The DOW 30 Index was 8300 points Below the Green Line on panic selling and FEAR. Since history tells us that Investments always return near their Green Lines, we did not Sell anything on the panic Selling which would have created large losses.
Instead the Green Line System bought more of the Strongest Leaders, and captured some quick profits this week on DOCU (+7.99%) TSLA (+26.13%) SHOP (+19.19%) AMD (+11.86) & RNG (+11.74%).
The Green Line System is under water on other Investments, and the goal is to EXIT them when they return near their Red Lines (50-day avgs.) Or when the CNN Fear & Greed Index returns back up near 70. (Now at 23).
Eventually the FEAR will eventually subside, as human emotions are temporary. But the Coronavirus is causing the FEAR, so let’s do some Technical Analysis on the data provided by www.worldometers.info (assuming the data is accurate).
CHINA New Cases have Peaked and down to only 2691 cases remaining.
SOUTH KOREA New Cases have Peaked and down to 4398 cases remaining.
IRAN New Cases are still rising with 23278 cases remaining, but deaths / day have peaked.
ITALY New Cases have finally peaked, but 70065 cases remaining. 99% of deaths had other health problems (Average age 79.5).
SPAIN New Cases might be peaking, but 57484 cases remaining.
USA New Cases might be peaking soon after a big surge last week, but 119194 cases remaining (98% are mild). Death rate is 2237. Maybe peak this week if we follow China & S. Korea.
GERMANY New Cases might be Peaking, but 49311 cases remaining. Death rate is very low (455).
FRANCE New Cases are still rising with 29561 cases remaining.
UK New Cases are still rising with 18159 cases remaining.
CANADA New Cases are still rising with 5084 cases remaining.
INDIA New Cases are still rising with 910 cases remaining.
Remember, there are about 30,000 deaths annually in the US (82 per day) from the Flu, and 38,800 annually from car crashes. If the rest of the world follows the paths of China & South Korea and quaranteens, then Covid 19 could be mostly over in 1-2 months. The FED is max printing and Congress just borrowed $2 Trillion to help American workers and businesses.
The ideal Investment Portfolio today would be to only own the Leaders that are Above the Green Lines. The Plan is to unload weaker position that are currently Below the Green Lines on the rally up.
If you are worried about a Bear Market, there are 3 Inverse Funds that now meet the Green Line Rules (SH S&P 500 Inverse Fund, RWM Inverse Small Cap Fund, and VXX Volatility Fund). All are currently in the Green Zones for Money Wave Buys soon. So Markets could drop down to re-test the Lows next week.
For the week the Dow was up 12.84%, the S&P 500 was up 10.76%, and the Nasdaq 100 was up 8.80%. The Long Term Trend for the Indices is mixed.
The Inflation Index (CRB) was unchanged and is Below the Green Line, indicating Economic Weakness.
Bonds were up 5.19% for the week and are Above the Green Line, indicating Economic Weakness.
The US DOLLAR was down 4.57% for the week, and is over-sold on the Short Term.
Crude Oil was down 4.95% for the week at $21.51 and GOLD was up 11.42% at $1654.10.
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MONEY WAVE BUYS SOON:
We are currently in 15 logged Open 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 (concentrating more on the Short Term now)
Buy the Leading Investments that are down near the weekly Green Zones.
ADBE ADOBE SYSTEMS INC. Buy when it Closes above $326.99 on High Volume.
ENPH ENPHASE ENERGY Wait for next Daily Green Zone Buy.
TSLA TESLA INC. Wait for next Daily Green Zone Buy.
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Long Term Strategy for IRAs & 401k Plans:
Alert! Market Risk is LOW (Green Zone). 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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