SGS Market Timer Status: SHORT
SHORT as of the close of Friday Oct 5, 2018
SGS is a Long-Term (weeks to months) Timer
Why Market Timing Is A Must
The monthly chart of SPX is shown above. As highlighted in the chart, in the last 25 years, SPX corrected significantly (15% or higher) when it had traded and closed below its monthly Dynamic Trend Line (DTL, 13 M-EMA) for two consecutive months.
Last Thursday, SPX tested its DTL on its monthly chart at 2710. If selling continues and SPX trades and closes below 2710 for October, there would be a good chance that selling continues for the rest of year, especially if Reps lose the Senate in the upcoming mid-term election.
SGS declined substantially last week, signaling more selling ahead.
Supports and resistances for SPX for the upcoming week are shown above. Chances are high that the rally that started late last Friday continues on Monday and Tuesday as indices retrace back 40% to 50% their losses. For SPX, I expect to see 2820 to 2840 before selling resumes.
SPX: S&P 500 Index SMA: Simple Moving Average
DJI: Dow Jones Industrial Index EMA: Exponential Moving Average
DJT: Dow Jones Transportation Index PDL: Primary Downtrend Line
NAZ: NASDAQ Composite Index PUL: Primary Uptrend Line
RUT: Russell 2000 Index ASL: Active Support Line
OEX: S&P 100 Index ARL: Active Resistance Line
NDX: NASDAQ 100 Index DTL: Dynamic Trend Line
TUL: Tentative Uptrend Line TDL: Tentative Downtrend Line
SHORT as of the close of Friday Oct 5, 2018
SGS is a Long-Term (weeks to months) Timer
Why Market Timing Is A Must
Last Thursday, SPX tested its DTL on its monthly chart at 2710. If selling continues and SPX trades and closes below 2710 for October, there would be a good chance that selling continues for the rest of year, especially if Reps lose the Senate in the upcoming mid-term election.
My Plan
Per my plan I closed my SDS long positions on Friday. My plan is to open new long SDS positions sometime early this week as SPX resumes selling to test 2710.
Current Long-Term Portfolio (2018)
Past Long-Term Portfolios (2008-2017)
Per my plan I closed my SDS long positions on Friday. My plan is to open new long SDS positions sometime early this week as SPX resumes selling to test 2710.
Current Long-Term Portfolio (2018)
Past Long-Term Portfolios (2008-2017)
Current Long-Term Portfolio (2018)
Past Long-Term Portfolios (2008-2017)
SPX: S&P 500 Index SMA: Simple Moving Average
DJI: Dow Jones Industrial Index EMA: Exponential Moving Average
DJT: Dow Jones Transportation Index PDL: Primary Downtrend Line
NAZ: NASDAQ Composite Index PUL: Primary Uptrend Line
RUT: Russell 2000 Index ASL: Active Support Line
OEX: S&P 100 Index ARL: Active Resistance Line
NDX: NASDAQ 100 Index DTL: Dynamic Trend Line
TUL: Tentative Uptrend Line TDL: Tentative Downtrend Line
TLR: Trend Line Resistance TLS: Trend Line Support
Disclaimer: The views expressed are provided for informational purposes only and should not be construed in any way as investment advice or recommendation. Furthermore, the opinions expressed may change without notice.
Disclaimer: The views expressed are provided for informational 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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