Sunday, August 23, 2020

Hungry Bears Are Roaming Around

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

As shown on the chart above, SPX ground higher last week but failed to overcome resistance at and around its previous all-time high (3393).  That's bearish and signals a high likelihood of sizable selling ahead.
As shown on  the chart above, SGS is long but heading lower, bearish. Also, SGS DTL (red) crossed its 20 D-SMA (blue), signaling a high likelihood of sizable selling ahead. 

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

My Plan

Per my plan, last Wednesday I opened a new long position in QQQ with remaining 15% cash, but on Friday after seeing significant bearish divergence in market breadth and internal for two days in a row, I closed my long positions in SPY, IWM, and QQQ.  My positions in GLD, SLV, and GBTC (bitcoin ETF) are still open.

Going forward, I am planning to watch indices for a few days and then decide how to deploy my cash (75% of total capital).


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.