11/27/2022 Markets were higher for the week on a slow Holiday week. The DOW 30 Index is now well Above the Green Line, but the other major Indices have stalled at or Below the Green Lines. Now the Markets need the FED to stop tightening (raising short term Interest Rates) to go much higher.
Many expect the FED to raise the FED Funds rate another 1/2 point at the next FED Meeting on Dec 14th. This week the FED started talking about Inflation possibly slowing, and the FED could be winding down on the tightening (which is what the Markets are waiting for).
The US Dollar and long term Interest Rates have come down, as the Economy has weakened from FED Tightening. But the Dollar and long term Interest Rates should have enough upward momentum to go back up and re-test the recent highs again (UUP & TBT Buys soon). Don’t be surprised if the Media creates another FEAR cycle, causing Stocks to pull back and the Leaders will return back down into the Green Zones for Money Wave Buys again.
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.
For the week the Dow was up 1.82%, the S&P 500 was up 1.59% and the NASDAQ 100 was up 0.74%. Most of the major Indices are still Below the Green Lines, so you should currently own the stronger Securities here.
The Inflation Index (CRB) was up 0.17% for the week and is Above the Green Line, indicating Economic Expansion.
Bonds were up 3.27 % for the week, and are Below the Green Line, indicating Economic Expansion.
The US DOLLAR was down 0.85% for the week and is Above the Green Line.
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.
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 Nov 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 High (RED). 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: John C. writes “Hi. I have been using your methods with quite good success over the past year, but lately I have been wondering something. Sometimes you post a daily chart for a company, but other times you post a weekly chart. For swing/momentum trading, which chart is best to go by, because looking at both, side to side, the Money Waves are quite different.
Many thanks, John C.
ANSWER: Hi John. The Green Line System is based on Buying the Leaders in the Green Zone, and taking Profits in the Red Zone.
The Daily Chart cycle (Green Zone to Red Zone) usually takes 1-3 weeks and the Weekly Chart takes 1-3 months. If you Buy the Weekly, don’t look at the Daily, as the Daily will cycle thru many times and be confusing. Pick only one Time Frame, and stick with it.
Many will use a shorter term Time Frame for ENTRY only, then go back to your Main Chart decision.
Thanks for writing.