11/26/2017: Markets were higher for the week, as Investors continued to Buy the Good News of better than expected Earnings and Tax Cut hopes.
Please be aware that the S&P 500 has not RETURNED to the Green Line in over a year, as Hope and Confidence are very high. But have some Cash available when the Markets return to the G L.
Most Leading Funds are back up in the Red Zones, so Nimble traders should be raising Cash. We like to Buy when the Herd is SCARED, and Investments are ON SALE!
LONG TERM TRADES
The Funds below are currently out of favor, but historically these could possibly Double or more from these lower levels. We are looking for a good Entry Point for these, but need the entire Economy & Inflation to pick up speed:
BITA BITA HOLDINGS Back in the Green Zone on Weekly Chart, but Relative Strength has dumped.
DBC COMMODITY FUND Relative Strength is back Below 90.
GRPN GROUPON INC. Wait for Break Out above $5.94 on High Volume.
JJC COPPER FUND Volume is Super Low.
KOL COAL FUND Wait for Break Out above $15.44 on High Volume.
LL LUMBER LIQUIDATORS Wait for Money Wave Buy on Weekly Chart.
REMX RARE EARTH FUND Wait for Green Zone Buy on the Weekly Chart.
TWTR TWITTER INC. Wait on Break Out Above $25.25.
UGA US GASOLINE FUND Volume is too low… Broke Out Above $32.03.
VALE VALE DE RIO Wait for Break Out above $11.72 on High Volume.
Alert! Market Risk is HIGH (Red Zone). The probability of successful Short Term Trades is lower, when the S&P 500 is Way Above the Green Line. Even the Strongest Funds can get chopped up. Either take quick gains from Money Wave Pops, or STAY IN CASH & WAIT for a larger correction.
Tell your Friends about the Green Line, and Help Animals.
QUESTION: Kerry writes:
“I am a relatively new member and am curious about the rationale for one of the rules. As I understand it, to qualify as a buy, a security must close below the the Money Wave (slow stochastic) reading of 20 for at least one day; merely dipping below the 20 reading for a part of the day and then breaking out above it that same day is insufficient to qualify for a buy. I am curious about the rationale for that distinction.
Thanks so much in advance,”
Sometimes the Strongest Investments do not Close on the Green Zone, and take off again. But we need firm Rules to have a System, so we require a Close in the Green Zone.
If many Investments are coming down in the Green Zone together on a Market drop, it is fine to fudge on the Rule (and sometimes better) and Buy the ones that “Tag & Go”.
Just have a Sell Stop Loss Below the trade.
Good trading, and tell your friends!