Sunday, May 31, 2020

When Technical Analysis Fails

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

Major indices are only a few percent away from their all-time highs while all macro economic data are at historic near depression lows. I have no idea how long this divergence is going to continue but under these conditions technical analysis fails to predict the future direction of indices.

My Plan

I am going to take the summer off from trading and resume blogging after labor day. If something major happens between now and then, I would post my thoughts and plans.

I'm in cash in my long-term accounts and planning to stay on the side line.  Have a great summer :).


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.