Sunday, April 12, 2020

When Pigs Fly

SGS  Market Timer Status:  SHORT 
SGS is a Long-Term (weeks to months) Timer
Why Market Timing Is A Must

sgs-st Market Timer Status:  neutral 
sgs-st is a Short-Term (hours to days) Timer

Since late February, the Federal Reserve has been using all available monetary tools, along with a couple of newly created ones, to soften the financial blow of a total and sudden shutdown of the economy. In a way, the Fed has been busy putting as much foam as possible on the runway to cushion the crash landing of the economy.

At the end of the day, despite what the Fed has done and continues to do, the economy is still crashing, unemployment skyrocketing, and companies going under. So, under these conditions, would indices rally, in a V-shape, to new all-time highs? Yes, but only when pigs fly.

SGS continued to advance higher everyday last week, signaling that a temporary bottom was reached on March 23 for major US indices.  If SGS levels off in the next few trading days, there would be a good chance that indices go sideways for an extended period, possibly a few weeks to a couple of months.
Support and resistance levels for SPX for this week are shown above.  


My Plan

I closed my positions in SDS & RWM last Tuesday.  Then on Thursday I opened my first of three positions in SDS.  My plan is to add to my short positions sometime this week.


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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.
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