Sunday, March 28, 2021

Two Things Are Happening At The Same Time

SGS  Market Timer Status:  LONG 
LONG as of the close of Friday Mar 5, 2021
Previous SGS Status
SGS is a Long-Term (weeks to months) Timer
Why Market Timing Is A Must

Since early 2009, an unprecedented amount of monetary and fiscal stimuli has been injected into the US economy and financial markets.  A couple of weeks ago, Biden signed the $1.9 trillion coronavirus relief bill and this week he is introducing his $3 trillion infrastructure bill.  In the meantime, the Fed continues to purchase $125 billion of treasury debts every month.

With this much money created out of thin air and pumped into the economy and financial markets, two things are happening at the same time:

  1. A good portion of that money finds its way into equities pushing indices higher and higher.

  2. As more money is "printed", the value of the money substantially decreases which forces assets, both soft like equities and hard like real estate, being priced much higher.  

There is a good chance that asset prices are doubled in the next five years.

As shown above, SPX broke through its downtrend line on Friday and it is less than 20 points from its recent all-time high.  DJT closed on Friday at a new all-time high.  DJI also broke through its downtrend line on Thursday and it is less than 200 points from its recent all-time high.  NDX and RUT very likely will follow suit and put in fresh all-time highs sometime later this week.

SGS Market Timer

As of the close of last Friday (3/26), the value of SGS was calculated to be +201 and the status of SGS remains LONG.

S&P 500 Support And Resistance Levels

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

My Plan

SGS is LONG and my plan is to stay with my long positions.


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.