5/22/2022 Markets were down again for the week as most are worried about high Interest Rates and Inflation. But long term Interest Rates dropped 9% this week as the Bond Market realized that the Economy is slowing down, and Bonds like that. Soon Commodities should also weaken and then Dumb Money will realize that they dumped Stocks & Bonds Way Below the Green Lines on Fear.
Most of the longer term Stock Market indicators are now very over-sold on Fear, which means that Smart Money should be accumulating Stocks from the Dumb Money that bought Way Above the Green Lines (on Greed) in January. The S&P 500 Index needs to Close above the blue trend line to bring in more Buyers.
Currently the tangible Commodities are Way Above the Green Lines, and Bonds are Way Below the Green Lines. Both will eventually return to the Green Lines, so maybe we will see a Stock Market rally when Interest Rates and Inflation fall. (Big surprise for Dumb Money.)
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.
More action this week on the Day Trading Scrolling Charts.
We have not had many intra-day Trade Alert signals lately as the Volume has been too Low with the Buy Signals. These low Volume Buy Signals tend to pop up and quickly fade back down. We like to see High Volume on rallies.
For the week the Dow was down 2.81%, the S&P 500 was down 3.01%, and the NASDAQ 100 was down 4.39%. The Long Term Trend for the Indices is up.
The Inflation Index (CRB) was up 1.34% for the week and is Above the Green Line, indicating Economic Expansion.
Bonds were up 2.18% for the week, but are Way Below the Green Line, indicating Economic Expansion.
The US DOLLAR was down 1.38% for the week and is Way Above the Green Line.
MONEY WAVE BUYS SOON
Be patient and WAIT for Green Zone Buy Signals!
LONG TERM INVESTMENTS (Hard to find many Long Term now because most normal Investments no longer have 80 Relative Strength required.)
Updated Top 100 List May 1, 2022
Dividend Growth Portfolio
Updated 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.
Tell your Friends about the Green Line, and Help Animals.
QUESTION: Winter writes ““Don’t take a Loss” confuses me. What does that mean?”
ANSWER: When the Investment has a Money Wave Buy Signal, it should pop up 3-6 % in just a few days.
If it is not popping up well, and the Money Wave > 50, either Get Out, or Don’t Take a Loss!
Something must be Wrong. There will be plenty more… Raise Cash, and don’t get Stuck! Wait for the next one.
Good trading and tell your friends!