09/26 /2016: Markets dropped down today, as most of the Leading Funds were in the Red Zones, and needed to correct.
If the S&P 500 does not blow thru the August highs, the Markets could be in trouble. Support is 2119 on the S&P 500.
We stopped out of SINA today for a 5 cent loss, and only have 1 position left: AMD Current Open Positions
Most Leading Funds were in the Red Zones (probably too late to Buy for the Short Term). Money Wave Buy soon for AMAT.
We will wait for Green Zone Buys, when Money Waves > 20 . We will email you when they are ready.
Charts for Leaders Watch List Page Closed Positions.
Alert! Market Risk 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.
Question from Henry:
I have most of my money in my 401k at work. My investment choices are fairly limited – index funds that have penalties if sold within 30 days, and some other domestic and international funds. Is there another momentum strategy that you suggest being so limited and not being able to do a short term strategy?
Since you don’t have many options in your 401k plan, you might want to just wait in CASH for Larger Sell-offs, and Buy then for a few months.
Markets are now in the 2nd LONGEST Bull in History, so expect a Recession soon, to make Stocks CHEAP.
Keep this Link to the Chart … You might want to Dip in the S&P when the Chart is way down in the Green Zone for a few months pop (like it did in August 2015).
There are other good Indicators like the Volatility Index to see if Markets are good and washed out of Sellers (like it was last year).
I notice when Money Wave enters buy zone (oversold) for an extended period of +3 sessions, it often must re-test this oversold condition one or even 2 times. Therefore, it is best to wait on deep oversold buys. Is this a parameter you consider?
We normally log every trade that meets the Rules, unless the trade is already up 4-5% on the day of the Money Wave Buy Signal.
When 6-10 Funds are all down near the Green Zones, the very strongest will dip into the Green Zone intra-day, or not quite even get to 20, and take off back up.
The problem with the strongest Leaders is that they don’t always correct much… If the Money Wave gets near 20, and you don’t buy it, SOMEBODY ELSE WILL!