05/03/2020 Markets were down slightly this week after the S&P 500 Index went up and tagged the Green Lines and then backed off. The S&P 500 has retraced back up 62% of the decline from January (Fibonacci Retracement info). A Fibonacci retracement strategy can point to possible corrections or reversals based on human behavior.
However, the Leaders are now back down in the Green Zones and should bounce soon. Leaders that just made New Highs should go back up to re-test the Highs. Please study the Watch List for Money Wave Buy Signals soon.
It looks like the weaker Indices (DOW 30 Index, Small Caps, Transports, & NYSE) could be doing an A-B-C Correcting rally back up from very over sold levels. Investments that are still Below the Green Line could drop again.
The Green Line System has been closing out most positions that were bought before Covid 19, and the Strongest Indices Semiconductor (SMH), NASDAQ 100 (QQQ), and the Tech Fund (XLK) were able to recover all of the losses. This shows the advantage of owning the Strongest Investments, as they recover first. Many weaker Investments are still way down and Below the Green Lines.
For the week the Dow was down 0.23%, the S&P 500 was down 0.06%, and the Nasdaq 100 was down 0.51%. The Long Term Trend for the Indices is mixed.
The Inflation Index (CRB) was up 4.32 % and is Below the Green Line, indicating Economic Weakness.
Bonds were down 1.56 % for the week and are Above the Green Line, indicating Economic Weakness.
The US DOLLAR was down 1.56 % for the week.
Crude Oil was up 16.77 % for the week at $19.78 and GOLD was down 2.00 % at $1700.90.
MONEY WAVE BUYS SOON:
We are currently in 4 logged Open Positions, for the Short & Medium Term. There are 10 Investments on the Short Term Watch List.
Be patient and WAIT for Green Zone Buy Signals!
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.
GDX GOLD MINING FUND Closed $31.84 but the Volume was not High. Wait for next Daily Green Zone Buy. All time High is $62.
KALA KALA PHARM. Wait for next Daily Green Zone Buy Signal. (Volume was not High last week on break out.)
Click for Portfolio (Open Positions)
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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.
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