08/26/2018: Markets were up for the week, as several major Indices made New Highs. Now the Indices should hold above the January Highs for the rally to remain healthy, as old Resistance should become Support.
A more “Bullish” scenario would have been for the Markets to shoot up thru the Highs with Huge Volume. That did not happen.
The “Bearish” scenario would be for the Markets to “Double Top” or form a “M” pattern, which would indicate a lack of new money and could cause Selling.
For the week the Dow was up 0.47%, the S&P 500 was up 0.86%, and the Nasdaq 100 was up 1.46%. The Long Term Trend on the Stock Markets is UP.
The Inflation Index (CRB) was up 1.77% and is Below the Green Line, indicating Economic weakness.
Bonds were up 1.08% for the week and Closed Above the Green Line, indicating Economic weakness.
The US DOLLAR was down 0.94% for the week, and should bounce near the Red Line soon.
MONEY WAVE BUYS SOON:
Be patient and WAIT for Green Zone Buys!
LONG TERM TRADES
NFLX NETFLIX, INC. was up 13% for the week, so we missed it…
SPLK SPLUNK, INC. was up 19% for the week, so we missed it…
MU MICRON TECH CHANGE Buy Signal to: Wait for Weekly Close above the Red Line, since the Semi group has weakened.
The Funds below are correcting down to their Green Lines, but the Relative Strength is remaining high. These tend to Bounce nicely when the weekly Money Wave crosses up > 20.
ARRY ARRAY BIOPHARMA Wait for Weekly Money Wave Close > 20.
IBKR INTERACTIVE BROKERS Wait for weekly Close Above the Red Line of $63.08 (50-day avg.)
INTC INTEL CORP. Wait for weekly Close Above the Red Line of $49.50 (50-day avg.)
MU MICRON TECH Wait for weekly Close Above the Red Line of $52.35 (50-day avg.)
TWTR TWITTER, INC. Wait for weekly Close Above the Red Line of $36.19 (50-day avg.)
WTW WEIGHT WATCHERS Wait for Weekly Money Wave Close > 20.
Alert! Market Risk is High (RedZone). The probability of successful Short Term Trades is better, when the S&P 500 is down near the Green Line.
Tell your Friends about the Green Line, and Help Animals.
A Letter to Sarah:
Hi Sarah. Above the Green Line is a System of rotating into Investments that generally have more Buyers than Sellers (Above the Green Line > 250 day average), and the highest Relative Strength (> 90 RS).
This System is designed to Buy High, and Sell Higher, Momentum Investing that requires the discipline to EXIT Investment position that are no longer the LEADERS, or follow the RULES.
Many are taught to Buy Low and Sell High, which can work well, but sometimes you must wait years for results.
We are basically using computers to identify the top 10% of Investments that have the highest flow of money into them. Then we Buy these on pull-backs to their Green Zones, based on the Money Wave.
Good trading, and tell your friends!