Monday, January 15, 2018

Indices Are Overbought - A Volatile Week Is Ahead

SGS  Market Timer Status:  LONG 
LONG as of the close of Friday, September 1, 2017
SGS is a Long-Term (weeks to months) Timer

Why Market Timing Is A Must

Chances are good that Dems and Reps do not reach an agreement on DACA by this coming Friday which could cause a government shutdown.  Indices could dip a couple of percents which would present a buying opportunity.

As shown above, SGS resumed its advance after a little dip earlier last week. That is bullish and signals higher prices ahead. BTFD.

The uptrend is very much intact and continuing.  Indices are, however, overbought and chances of a sell-off to test ASL and weekly DTL are high.

My Plan

Per my plan, I opened my 2nd long position in SSO last week.  My plan to do my 3rd and final long position in UPRO sometime this coming week, hopefully into a consolidation sell-off.

Current Long-Term Portfolio (2018)
Past Long-Term Portfolios (2008-2017)

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.