Sunday, October 4, 2020

Mother Of All Chaos Is Likely

SGS  Market Timer Status:  NEUTRAL 
NEUTRAL as of the close of Friday Sep 25, 2020
SGS is a Long-Term (weeks to months) Timer
Why Market Timing Is A Must

There is a reasonable chance that Trump's condition deteriorates, he is intubated, and put on a ventilator.  If Trump, while he is conscious and capable, does not issue a "temporary transfer of presidential power to Vice POTUS" notification to the Congress, then the mother of all chaos would breakout until Pence is installed as "the acting POTUS" under 25th Amendment of the US Constitution.  That might take hours to days, during which indices very likely drop significantly.

SGS Market Timer

As of close of last Friday, the value of SGS is +47.  The status of SGS remains NEUTRAL.

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

My Plan

Per my plan, I closed my QQQ and SPY long positions early last week.  I still have long positions  (25% of total capital) in GLD, SLV, and GBTC

With SGS remaining NEUTRAL, it's best to be defensive and hold a large cash position.


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.