Sunday, December 13, 2015

SGS Market Timer Is SHORT

SGS Market Timer Status:  SHORT 
SHORT as of close of 12/11/2015
RTS Current Portfolio (2015)

SPX traded as lows as 2008.80 on Friday and closed (weekly) below the significant support at 2020.  The penetration through 2020 support was less than 1% (0.55%) which signals a high likelihood of a back test of that support soon, possibly on Monday.  Also, as we enter into the most bullish trading period of the year, chances are good that SPX rallies on the back of short covering and dip buying to test its ADL around 2060 later in the week. 

For SPX, weekly immediate support zone is at 2000 - 1975 and weekly immediate resistance zone is at 2020 - 2060.

My Plan:
 
My plan is to open first of four short positions in SPX and IWM as SPX back test 2020, very likely on Monday.

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SPX: S&P 500 Index    D-SMA: Daily - Simple Moving Average
DJI: Dow Jones Industrial Index    D-EMA: Daily - Exponential Moving Average
DJT: Dow Jones Transportation Index    PDL: Primary Downtrend Line
NAZ: NASDAQ Composite Index    PUL: Primary Uptrend Line
RUT: Russell 2000 Index    ADL: Active Downtrend Line
OEX: S&P 100 Index    AUL: Active Uptrend Line
NDX: Nasdaq 100 Index    DTL: Dynamic Trend Line   
TUL: Tentative Uptrend Line   TDL: Tentative Downtrend Line  

Disclaimer: The views expressed are provided for information purposes only and should not be construed in any way as investment advice or recommendation.  Furthermore, the opinions expressed may change without notice.
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