08/06/2016 Weekly Commentary: Markets were up slightly for the week, and Closed strong on better economic news. Now the Markets are preparing for Higher Interest Rates, as Bonds, Utilities and Real Estate all have weakened (Relative Strength has dropped Below 90). The FED is running out of excuses the keep manipulating Short Term Interest Rates.
Long Bonds have gone Parabolic, which normally means the TOP, and also the BOTTOM of Interest Rates. Continued strength in Commodities will confirm that.
The S&P 500 was able to exceed Monday’s high, so it did not FAIL. This could be Wave 5 since the bounce off the Green Line in late June. After Wave 5 is complete, the S&P 500 should drop down to test Support around 2130.
Current Open Positions We have Closed out all but 2 positions. Most Leaders are in the Red Zones, Wait for Money Wave Buys coming out of the Green Zones. We will email you when they are ready.
When the Market breadth is narrow like it is now (few new highs), either take quick gains from Money Wave Pops, or STAY IN CASH & WAIT for a larger correction.
Many Funds are having trouble staying Above 90 Relative Strength. None of the major Indices have Above 90 Relative Strength. Only ETFs of Metals GDXJ, GDX XME, SLV, Semis SMH, and a few Country Funds EWZ, & EWT have good Volume and Above 90 R S.
The S & P may be in wave 5, the MACD has crossed +, the blue chart shows the lines coming together, and the market did not fail. Should we be buying the S & P at this time ? Thank you so much for any insight. Tom
It is safer to Buy in Wave 1, not Wave 5 (which normally has less power & Volume).
It is safer to Buy when the lines BEGIN to Narrow (like in late June), not when they are almost together.
We like to Buy when the Money Wave on a Daily Chart is in the Green Zone… Most Investments currently are in or near the Red Zones.
Thank you for your questions.
Great ! Thank You.
How can I duplicate your blue chart indicators?
I suppose you mean the Spread Indicator?
Click on the center of the Chart to go to Settings.
Under “Indicators” tab,
select Price, then Parameters is -SPY, Position is Below
Add another,
select Price, then Parameters is SPY, Position is Below
Make Blue Box for color…
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