Sunday, November 5, 2017

Sideways and Downward

SGS  Market Timer Status:  LONG 
LONG as of the close of September 8, 2017
SGS is a Long-Term (weeks to months) Timer

Why Market Timing Is A Must

For the last five weeks, SGS has been putting in lower lows as major indices have been putting in higher highs.  Also, last Friday, on SGS chart, DTL (13 D-EMA) crossed 39 D-EMA.  In the recent past, indices went sides ways or slightly down when there was a bearish crossing of 13 and 39 D-EMA on SGS chart.  Chances are good that we see a similar sideways or downward movement in major indices but so long as SGS remains above 50, those dips would be good buying opportunities.

Chances are high that SPX tests its immediate supports this coming week as political news breaks and the likelihood of Republicans passing their tax plan sometime this year fluctuates.  I think eventually a tax plan that is extremely rewarding for Big Money would pass and get signed sometime this year or early next year.  At the minimum, it would reduce the corporate tax rate to around 20% and allow companies to bring in their overseas profits with very little or no tax consequences.  That is pretty bullish for the market and so long as SGS is above 50, on a weekly closing basis, dips in indices should be bought.  

My Plan

My plan is to open my 2nd long position in SSO (2X SPY) on a 3% or higher pull back, hopefully sometime soon.

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.