Sunday, March 4, 2018

SGS Market Timer Is SHORT

SGS  Market Timer Status:  SHORT 
SHORT as of the close of Friday, March 2, 2018
SGS is a Long-Term (weeks to months) Timer

Why Market Timing Is A Must

Major indices sold-off around 2% last week. There is a good chance that selling continues until early to mid April, especially if Turmp chaos continues.

As shown above, there is an extremely high chance that SPX tests its February 9 low (2532) sometime in the next 10 trading days. There is also a high chance that the support around 200 D-SMA (2565) fails and SPX continues its sell-off to around 2200 between now and early to mid April. That would be a garden variety bull market correction of 20% to 25%.

SGS advanced higher early last week but then it declined below -50 by Friday and changed its status from NEUTRAL to SHORT. 

For SPX, the likelihood of a sell-off to test its February 9 low (2532) is extremely high.

My Plan

Per my plan, I closed my only SDS position on Wednesday and of course within a few minutes indices started to sell-off :(.

SGS is SHORT and my plan is to open my first of 3 positions in SDS early Monday AM.

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.