Sunday, March 19, 2017

The Calm Before The Storm

SGS  Market Timer Status:  LONG 
LONG as of close of November 11, 2016
SGS is a Long-Term (weeks to months) Timer

SGS ticked higher for the third day in a row, that's bullish. If SGS closes above its DTL (shown in red), I would buy my first buy in my long portfolio (SPY).

Short-Term (days to weeks) Outlook

Shorter term, SPX is range-bound by its trendlines.  There is an excellent chance, however, that SPX exits its relatively narrow trading range soon.  I have no idea which way SPX breaks out.  I'm letting SPX make the first move and then I'll follow. 

Long-Term (weeks to months) Outlook

We're experiencing the calm before the storm.  I don't know which way SPX is going to breakout.  Patience.

My Plan

I am going to follow SGS and start buying SPY if SGS starts to uptick and closes above its DTL. If SGS reverses and starts to go lower, cross zero line and turns short, I would start opening short positions in SPX by buying SH.

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 informational purposes only and should not be construed in any way as investment advice or recommendation.  Furthermore, the opinions expressed may change without notice.