Sunday, April 23, 2017

Volatility Continues And Presents A Buying Opportunity

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 every day last week, signaling that sell-off since early March very likely has run its course.  On Thursday and Friday, SGS closed above its DTL signaling a good entry point for opening long positions. 

As shown on the chart above, while SGS is "LONG", i.e. SGS value is greater than zero, SGS crossing its DTL have been good points to open (when crossing above DLT from below) and to close (when crossing below DLT from above) long positions.

My Outlook

Chances are good that the sell-off since early March ended last and indices are heading higher to challenge their new all-time highs. I expect a volatile week ahead because of the election in France and the possibility of a government shutdown on Friday.

My Plan

My plan is to open my first long position of three in SPY sometime early this coming week.

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    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
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.