Sunday, October 19, 2014

Another Ugly Week Is Coming Up

SGS Market Timer Status:   NEUTRAL 
as of close of 10/14/2014

RTS Long Term Current and Past Portfolios

Sell off accelerated last week as SPX broke its price channel on Monday and started trading below its 200 D-SMA.  After testing its Primary Uptrend Line (PUL) on Monday and Tuesday, SPX broke through it and started trading below it for two days.  On Friday indices rallied and SPX managed to close above PUL. 

Repeated blows to PUL and trading below it for two days is significant and there will be consequences.  There is a good chance for SPX to rally on Monday to back test its 200 D-SMA around 1905 before it sells off dramatically again.  If that happens, SGS Market Timer would change from "NEUTRAL" to "SHORT".  My plan is to open first of three short positions in SPY, QQQ and IWM sometime on Monday.

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.