Sunday, January 9, 2022

SGS Market Timer Is SHORT

SGS  Market Timer Status:  SHORT 
SHORT as of the close of Friday January 7, 2022
Previous SGS Status
SGS is a Long-Term (weeks to months) Timer
Why Market Timing Is A Must

Last week, the yield on 10-Year Note, shown above, broke through its ARL and headed toward 2%.  That's bearish for indices, especially NDX.

NDX sold off last week and closed right on its PUL-2 which has been shouldering its gain since the Covid low in March of 2020.  A weekly close below PUL-2 would be quite bearish for NDX and the market.

SGS Market Timer

As of the close of last Friday (1/7), the value of SGS was calculated to be -282 and the status of SGS changed from NEUTRAL to SHORT.

S&P 500 Support And Resistance Levels

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

My Plan

I'm in cash except for two small crypto positions.  With SGS being SHORT now, my plan is to open new positions in SPXS, TZA, and SQQQ (10% of total capital each) sometime this week,


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.