The Markets are down slightly today, on low Holiday Volume. Not much Selling, and the The S&P could be back in the Green Zone for a bounce soon.
Leaders are still Over-bought. The Reward / Risk ratio of investing now is poor, so we suggest staying in Cash. Several Stocks have pulled back into the Green Zones, and have Money Wave Buy Signals today … Please do not Buy then unless you are VERY NIMBLE, as they are still Way Above the Green Lines.
We are waiting for the S&P 500 to correct back down near the Red Line (50-day avg.) to set up for a good bounce.[s_static_display]
Money Wave Buys soon!
The Following Investments will probably have a Money Wave Buy Signal
(Slow Stochastic Closing > 20) on today’s Close.
We are LOWERING the Sell STOP on CLF to $8.41, as it is still above the Red Line.
Exit TECK if it is going to Close below $20.13 Support.
EXIT NBR if it is going to Close below the Pink Line of $16.24.
Exit SMH if it is going to Close below the Pink Line of $72.60.
ON DECK: BBY & ECA We will email or text when they are ready.
Click for WATCH LIST
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Click for OPEN POSITIONS
Many like to buy the day before, if the Investment has not popped up too much.
Money Wave Buys are usually good for a 3-6 % move in a few days.
About 1/3 of the time, the Money Wave Buys will result small losses, so please use a Sell Stop Loss after all Buy orders.
I long in AMD but considering taking profits before Jan 1 due to your analysis that everything is WAY above the Green Line. If I understand correctly, you’re saying there could be a big January sell off (return to Green Line) across the entire market?
We know from history that all Investments will eventually return to the Green Line…
Way Above the Green Line is excess emotional buying and GREED.
Way Below the Green Line is panic Selling and FEAR.
Normally a strong stock like AMD will tell you when to sell, when it gets Way Above the Green Line, and FAILS to make a Higher High. Then it should correct down near the Red Line, and set up for another re-test of the Highs… AMD should be a good trade back up, when it comes down near the Red Line… Then if it Fails at the previous High or “Double Tops”, it could go down to the Green Line.