Looks like AMAZON saw that WHOLE FOODS was coming out of a Bear Market, also. Too bad the Relative Strength dropped so low (below 50) yesterday, as we were waiting to Buy WFM for a Long Term Hold.
Markets are down slightly today, but the DOW is holding up the Markets on buying of Big Blue Chips. The S&P 500 is still trying to hold Above the Pink Line (10-day avg.) around 2434, to avoid a Short Term Sell Signal.
The Leading Techs and Semiconductors are down near the Red Lines (50-day avgs.) again. They will normally bounce back up soon to re-test the recent Highs.
The Money Wave Buy list is growing, which normally means a bounce on the Markets soon. Try to Buy Investments that just made fresh new Highs, and still have Relative Strength Above 90.
Money Wave Buys soon!
The Following Investments will probably have a Money Wave Buy Signal
(Slow Stochastic Closing > 20) on today’s Close.
BUYS TODAY:
JD JD.COM INC Money Wave Buy today. Sell Stop if Closes Below $36.77.
UN UNILEVER N V. Money Wave Buy today. We will not log UN, as it is Way Above the Green Line.
YHOO YAHOO! INC. Money Wave Buy today. We will not log YHOO, as the Verizon Buy Out is about complete.
Money Wave Buy Signals soon: AAOI APPLIED OPTO, BABA ALIBABA GROUP, BBRY BLACKBERRY INC, BBY BEST BUY CO. EXAS EXACT SCIENCES, LL LUMBER LIQUIDATORS, & LRCX LAM RESEARCH. We will email you when they are ready. Click on WatchList
Emotions are very high now, so please do not Buy unless you are VERY NIMBLE. The Leaders are still Way Above the Green Lines (all Investments eventually return to their Green Lines).
SELLS TODAY: NONE TODAY
Click for PORTFOLIO (Open Positions)
Click for CLOSED POSITIONS
Many like to Buy the day before, near the Close, if the Money Wave is going to create a Buy Signal (Closing > 20).
Don’t Buy if the Investment has already popped up too much. Money Wave Buys are usually good for a 3-6 % move in a few days. We will not log trades if the Reward/Risk is not at least 2:1.
I just reviewed your weekly update. Question, why are you raising the stop loss on FBR from 10.99 to 11.28 on Monday ?? Thank you.
Hi Dutchy. When the Money Wave is greater than 50, and the Investment has not Popped up much, something could be WRONG.
Maybe the Investment needs to go down again to re-test Support. It is usually better to EXIT, and wait for the next cycle down, than to sweat it out and hope that the Short Term bottom has been made.
This is all based on probabilities, and that the Strong Investments will Pop, when they are READY… If not, EXIT.
Thank you. Makes sense. Thanks for educating me on the nuances of the system.
You are welcome!