08/13/2017: Markets were down over 1% this week, as the DOW was 2000 points Above the Green Line, and Smart Money finally took some profits. Dumb Money had been Buying on the better than expected Earnings (SELL ON GREAT NEWS), and now they have lost confidence, and some are Selling on Bad News (War talk).
Smart Money looks for Bad News to create opportunities (BUY ON BAD NEWS). Many of the Strongest Leaders that just made fresh New Highs recently, are coming back down into their Green Zones.
When Money Wave Buy Signals occur soon, try to Buy the Leaders that recently made New Highs, and are also still Above the Red Lines (50-day avgs.) They tend to bounce the best.
LONG TERM TRADES
The Funds below are currently out of favor, but historically 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:
DBC COMMODITY FUND Waiting for Break Out Above $16.08.
IPI INTREPID POTASH Wait for Green Zone on Daily Chart.
JJC COPPER FUND Back in Red Zone, and Relative Strength finally got up to 90.
KOL COAL FUND Waiting for > 90 Relative Strength.
LL LUMBER LIQUIDATORS Wait for Green Zone on Daily Chart.
MDR MCDERMOTT INT’L. Waiting for > 90 Relative Strength.
UGA US GASOLINE FUND Waiting on Break Out Above $32.03.
VALE VALE DE RIO Waiting for > 90 Relative Strength.
Alert! Market Risk is Medium (Yellow 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.
- S&P 5002425.55-4.46 -0.18%
- NYSE11699.8311-12.8848 -0.1100%
- NASDAQ6216.5269-5.3877 -0.0866%
- RUT 2K1357.79260-1.14709 -0.08441%
Tell your Friend about us, and HELP ANIMALS.
QUESTION: Paul writes “I have noticed that you have hourly charts with different guidelines.
Is this tipical for just a day trade or can it last several days?”
ANSWER: Hi Paul! Most use the 60-min Charts to get in early, if it looks like the Daily Chart will have a Money Wave Buy Signal on the Close that day.