Sunday, August 30, 2020

Cash Becomes Trash

 SGS  Market Timer Status:  LONG 

LONG as of the close of Friday May 22, 2020
SGS is a Long-Term (weeks to months) Timer
Why Market Timing Is A Must

Last Thursday, Jerome Powell effectively said that there was no limit to the Fed's balance sheet.   In other words, the Fed will pump trillions and trillions more into the economy, i.e. stock market, as asset prices rise and cash becomes trash. 
As shown on  the chart above, SGS is long and now heading higher after last week strong and broad rally. 

I am also working to improve SGS timer by using the same timing algorithm used for sgs-st.

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

My Plan

I am planning to watch indices and now looking for a dip to open new long positions.  I am planning to put 25% of cash into SPY sometime next week.


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.