Sunday, August 2, 2020

Indices Are Coiled Up To Strike Higher Or Lower

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

Four of seven "FANGMAN" stocks (FB, AMZN, NLFX, GOOGL, MSFT, AAPL, and NVDA) reported last Thursday after close, but the market response on Friday was generally disappointing. If a significant sell-off starts, FANGMAN and other NDX constituents would correct significantly.

For the last two weeks, SPX has been trading in an 80 point range (3200 - 3280).  SPX has coiled up and it's ready to strike out of its trading range (green rectangle) in either up or down direction. 

SGS is long but starting to head lower, bearish.

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

My Plan

Per my plan, I opened a small long position in GLD last Friday.  I also opened an even smaller long position in GBTC. 

I don't know which way indices are going to break out of their recent trading range.  Best is to let them make their first move and then follow.   My plan is to buy either QQQ or PSQ depending on the direction of indices out of their recent trading range.


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.