Sunday, February 23, 2020

As Market Worries Indices Suffer

SGS  Market Timer Status:  LONG 
SGS is a Long-Term (weeks to months) Timer
Why Market Timing Is A Must

sgs-st Market Timer Status:  short 
sgs-st is a Short-Term (hours to days) Timer

Market hates nothing more than uncertainties.  Besides the uncertainties associated with the coronavirus and how it's affecting the global economy, now with Sander's big win in Nevada, Market must worry about Sanders winning the presidential election in November.  There is an excellent chance (> 80% in my estimation) that Bernie becomes POTUS #46 in a historic landslide this November.  That is quite bearish.

The sell-off that started last week very likely accelerates on Monday.  Internal data on Monday will be telling as far as how serious and deep of a correction is coming our way.

SGS declined last week and didn't confirm major indices new all-time highs on Wednesday.  SGS value is still hovering around overbought levels and the recent divergence by SGS as indices pushed higher is bearish.


Support and resistance levels for SPX for this week are shown above.

My Plan

sgs-st turned from neutral to short  on Friday and I opened one position long (33.3% of total capital) in SPXU.

Current Long-Term Portfolio

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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.
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