Green Line Weekly Sep 9, 2018

 

09/09/2018:  Markets were  down for the week, as the Indices are coming back down to their Green Zones, for Short Term Money Wave Buys soon. The S&P 500 has faded back down to test the January Highs of 2872 to see if that level becomes new Support. 

For the week the Dow was down 0.19%, the S&P 500 was down 0.93%, and the Nasdaq 100 was down 2.93%.   The Long Term Trend on the Stock Markets is UP.

 

The Inflation Index (CRB) was down 1.35% and is Below the Green Line, indicating Economic weakness.

Bonds  were down 1.32% for the week and Closed Below the Green Line, indicating Economic Strength.

The US DOLLAR  was up 0.36% for the week, and should bounce near the Red Line soon.

Crude Oil was down 2.94% for the week at $67.75, and GOLD was down 0.52% at $1200.

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MONEY WAVE BUYS SOON:   

We are currently in 2 logged Open Positions, for the Short & Medium Term.  There are 8 Investments on the Short Term Watch List. 

Be patient and WAIT for Green Zone Buys!

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LONG TERM TRADES 

Most of the longer term favorites below are currently Below their Green Lines, as the Market Internals have narrowed. These tend to do well if they can Bounce up from the Green Lines.

ETFC    E*TRADE FINANCIAL    Wait for Weekly Money Wave Close > 20.
INTC    INTEL CORP.    Wait for weekly Close Above the Red Line of $48.79 (50-day avg.)
MU    MICRON TECH    Wait for weekly Close Above the Red Line of $51.01 (50-day avg.)
TWTR    TWITTER, INC.    Wait for weekly Close Above the Red Line of $35.00 (50-day avg.)
WTW    WEIGHT WATCHERS    Wait for Weekly Money Wave Close > 20.

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Click for  Portfolio (Open Positions)  
Click for  Watch List
Click for  Closed Positions

 

Alert! Market Risk is High (RedZone). The probability of successful Short Term Trades is better, when the S&P 500 is down near the Green Line. 

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,”

ANSWER:

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!