Sunday, February 11, 2018

SGS Market Timer is SHORT

SGS  Market Timer Status:  SHORT 
LONG as of the close of Friday, February 9, 2018
SGS is a Long-Term (weeks to months) Timer

Why Market Timing Is A Must

SPX broke through one support after another last week and finally bounced off of its 200 D-SMA on Friday.  Breadth and Internal data deteriorated, significantly signaling more selling ahead. 

SGS declined last week and by Friday it closed significantly below -50.  SGS status as of the close of last Friday is SHORT.

SPX found support at its 200 D-SMA and PUL-3 on Friday.  There is a good chance that the rally that started on Friday continues next week and SPX retraces back between 40% to 60% of its decline from all-time of 2872. 

My Plan

My plan is to close my long positions this coming week as SPX retraces back its decline.  Closing an open position with a loss is the most difficult skill to master in trading. A trader without that skill will never be a successful trader.  

I will tweet next week as I close long positions.

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.