05/17/2020 Markets were down for the week as the S&P 500 Index failed to push up Above the Green Line. The Markets have rolled over, but not much Selling for two reasons: 1.) Massive FED Printing and 2.) No Alternative Investment (NAI). Swing Trading.
Most of the high Volume leaders that we suggested to Buy at the Lows in March (AAPL ADBE AMD JD MSFT NLOK NVDA PLUG SHOP & TSLA) have bounced 40 – 100 % and are now all in their weekly Red Zones (probably too late to Buy for the Short Term). Very few Leaders have made Higher Highs this week for the rally to continue.
This could be a warning sign that Money is drying up, as most Weekly Charts are also back up in the Red Zones.
The weaker Indices (DOW 30 Index, Small Caps, Transports, & NYSE) have rolled over and could easily drop back down to the March Lows. However, the Selling so far has not been very powerful.
If the Economy improves, then historically Bonds would sell off and the lower prices on Bonds would make them more competitive with Stocks. Also with all of the FED Printing, Inflation could finally return and confirm why Gold and Gold Mining Funds (GDX) are making New Highs.
For the week the Dow was down 0.78%, the S&P 500 was down 2.26%, and the Nasdaq 100 was down 0.71%. The Long Term Trend for the Indices is mixed.
The Inflation Index (CRB) was up 0.01% and is Below the Green Line, indicating Economic Weakness.
Bonds were up 1.66% for the week and are Above the Green Line, indicating Economic Weakness.
The US DOLLAR was up 0.55 % for the week.
Crude Oil was up 12.81% for the week at $29.52 and GOLD was up 2.47% at $1756.30.
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MONEY WAVE BUYS SOON:
We are currently in 3 logged Open Positions, for the Short & Medium Term. There are 6 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.)
Buy the Leading Investments that are down near the Weekly Green Zones.
AUY YAMAHA GOLD Wait for next Daily Green Zone Buy Signal. All time High is $18.50.
GDX GOLD MINING FUND Wait for next Daily Green Zone Buy Signal. All time High is $62.
KALA KALA PHARM. Wait for next Daily Green Zone Buy Signal.
LLNW LIMELIGHT NETWORKS Buy if it Closes above $5.38 on High Volume.
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Click for Portfolio (Open Positions)
Click for Watch List
Click for Closed Positions
NEW DAY TRADE LIST MAY 15, 2020
Dividend Growth Portfolio (we are now posting a Dividend Calendar for the entire portfolio to assist with planning purposes).
ETF Sector Rotation System – New Quarterly Rotation was on Apr 1, 2020.
Long Term Strategy for IRAs & 401k Plans:
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
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QUESTION: Peter writes “I am confused on this. Money Wave > 50. Don’t Take a Loss! What does that mean??”
ANSWER: Hi Peter, If the Money Wave is above 50, and the Investment is not popping up well, something could be wrong.
So Get Out before you lose money. Recently VXX went up 7 % in the morning and then reversed… We are saying: Get Out or Don’t Take a Loss, so you would have EXITED VXX at your Buy Price of $39.51.
Good trading and tell your friends!
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