05/07/2017: Markets were up for the week, as the Indices are finally re-testing the March Highs. The NASDAQ 100, Techs & World Indices have gotten stronger, while the DOW, Financials, Transports, Metals & Commodities have all weakened. We should find out soon if there is more Money remaining to push the Markets higher.
The Volatility Index is down under 11, and made a 10 -year Low this week. Historically these low values indicate extreme enthusiasm, and Smart Money will normally capture profits soon. This is confirmed with the major Indices being Way Above the Green Lines.
Bonds have rallied all the way back up to the Green Line, indicating expectations of a Slowing Economy…
Commodities and Oil are weak, indicating expectations of a slowing Economy.
LONG TERM TRADES – We are looking for a good Entry Point for these, which could possibly Double:
DBC COMMODITY FUND Waiting for Break Out Above $16.08.
IPI INTREPID POTASH Waiting for Break Out Above $3.04.
JJC COPPER FUND Waiting on a Pull-back.
KOL COAL FUND Waiting for a Pull-back.
MDR MCDERMOTT INT’L. Waiting for Bounce Up & Above 90 Relative Strength.
UGA US GASOLINE FUND Waiting on Break Out Above $32.03.
WFM WHOLE FOODS MARKET Waiting on a Pull-back.
Alert! Market Risk is 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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ERYK writes “I am a novice investor finishing up my last semester in college before I start my career in June. My father taught me a great deal of trading in the stock market, and the basics to get me started before he passed away. He showed me your charts and methods to which he profited greatly, which I thank you for.”