BUY LOW & SELL HIGH. We have all heard this, but what does Sell High mean? High is a relative term and Investments get High or Over-Bought because of human emotions. Emotions are very difficult to measure precisely, but with Technical Analysis you can usually “Ball Park” High and Low Markets within a few weeks. Markets become Low on lots of Bad News. Markets become High on lots of Good News. Recent Good News has been better Earnings and a Fed Cut.
When many Weekly Technical Indicators are HIGH like now, one should measure the Reward / Risk of Buying now. For example AAPL is 26.5 % Above the Green Line, and was Below the Green Line in June. For AAPL to justify a 2 : 1 Reward / Risk it needs to go up another 53 % from here. (Maybe not).
11/03/2019: Markets were up again for the week as the FED lowered Short Term Rates again [GOOD NEWS]. This Cut might be the last one, with the Markets on Highs and Unemployment on Lows. Earnings have been better than expected [GOOD NEWS]. The S&P 500 was able to exceed the July Highs of 3028, so now 3028 should become Support.
For the week the Dow was up 1.39%, the S&P 500 was up 1.51%, and the Nasdaq 100 was up 1.65%. The Long Term Trend on the Stock Markets is UP.
The Inflation Index (CRB) was up 1.07% and is now slightly Above Below the Green Line, indicating Economic Strength.
Bonds were up 1.65% for the week and are Above the Green Line, indicating Economic Weakness.
The US DOLLAR was down up 0.56%, after being hurt by the FED Cut.
MONEY WAVE BUYS SOON:
Be patient and WAIT for Green Zone Buy Signals!
LONG TERM INVESTMENTS
Buy the Leading Investments that are down near the weekly Green Zones.
AYX ALTERYX INC. Buy if it is going to Close above $98.33 on High Volume.
NVCR NOVOCURE LTD. Buy if it is going to Close above $78.83.
SBUX STARBUCKS CORP. Buy if it is going to Close above $87.68 on High Volume.
SHAK SHAKE SHACK INC. Buy if it is going to Close above $85.50 on High Volume.
SPWR SUN POWER Buy if it is going to Close above $10.33 on High Volume.
Alert! Market Risk is MEDIUM (Yell0w 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
QUESTION: Will writes “How do I get good in depth updates when the market changes course?”
ANSWER: Hi Will, all you need to do is follow 2 Charts.
- First Chart: Buy the Markets for the Short Term in the Green Zone and take profits in the Red Zone. Click Link here.
- Second Chart: Buy the Markets for the Longer Term in the Green Zone. Click Link here.