Saturday, January 4, 2020

The Law Of Unintended Consequences

SGS  Market Timer Status:  LONG 
LONG as of the close of Friday Oct 25, 2019
SGS is a Long-Term (weeks to months) Timer
Why Market Timing Is A Must

SGS-ST Market Timer Status:  Neutral 
Neutral as of 1 PM Tuesday Dec 24, 2019
SGS-ST is a Short-Term (hours to days) Timer

Neither the US nor Iran wants a war but the law of unintended consequences might soon dictate one in the Persian Gulf. If an all out war breaks out, the global everything bubble that has been inflated by central banks around the world in the last 11 years, would surely pop.  That would send the US and the global economy into a deep recession if not a depression.

After reaching an over-bought level last week, SGS declined this week, signalling that the sell-off that started on Friday very likely continues for another week or two.

Support and resistance levels for SPX for the coming week are shown above.  

My Plan

SGS-ST is still Neutral.  I'm in cash and waiting to see which way SGS-ST turns.

Current Long-Term Portfolio
Past Long-Term Portfolios


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.