12/18/2016: Markets were mixed for the week, after the FED RAISED Fed Funds Rate to 1/2%… The Trump Rally is losing momentum, as the Banks & Financials are about to go into Short Term Sell Signals. The S&P 500 should correct back down to the Red Line soon (50-day Avg.), which should create a nice Buying Trade back up.
Raising the Fed Funds Rate was Bullish, and Good NEWS for the US Dollar. But Smart Money does not Buy on Good News, they SELL… The HERD usually Buys on Good News, and regrets it, as most do when they Buy Way Above the Green Line (see US Dollar Chart). Since the US Dollar made Higher Highs, it should correct down near the Red Line, and then go back up. The FED probably won’t Raise Rates for several months, so there is plenty of time for the US Dollar to fade down towards the Green Line.
This creates an opportunity for Gold Miners, which are good value, compared to most Investments. There is Fear in GOLD and in the Miners, which means Money to BE MADE. But GOLD has corrected about 80% from the August highs which is more than the normal 62% Wave 2 decline. That means that the recovery could be slow. The Strongest Mining Index, GDXJ, has corrected about 65%, so it might survive if can get back Above the Green Line of $36.50 (when the Dollar corrects)… GDXJ is still up 60% for this year!
Please view the Leader List Charts for pending Money Wave Buys & Open Positions.
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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.
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