Sunday, November 1, 2020

Mother Of All Critical Weeks Is Coming Up

SGS  Market Timer Status:  SHORT 
SHORT as of the close of Friday Oct 30, 2020
Previous SGS Status
SGS is a Long-Term (weeks to months) Timer
Why Market Timing Is A Must

Today starts one of the most critical weeks in the history of our country.  Below is what Market expects to happen this Tuesday:
  • A Biden Decisive Win (>95%) - Indices might sell off initially, but knowing that Biden is going to have to come in with mother of all fiscal stimuli ($5 to $10 Trillion), all asset classes (hard and soft) would go higher in 2021. The reason is that all assets would have to be priced with a devalued dollar; therefore, prices would have to be larger numbers.

  • A Close And Contested Election (<4%) - Similar to what happened in November 2000 to January 2001, there would be a blood bath in the US and global equity markets until the US Supreme Court decides who the POTUS is.

  • A Trump Decisive Win (<1%) - No idea how markets would react.

SGS Market Timer

As of close of last Friday, the value of SGS was calculated to be -143.  The status of SGS changed from LONG to SHORT.

S&P 500 Support And Resistance Levels

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

My Plan

Indices sold off last week and continued to go lower on Friday.  SGS is SHORT now and my plan is to stay with my positions in GLD, SLV, Bitcoin (30%), and cash (70%) until election is over.


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.