Sunday, June 12, 2022

QT Is In Progress ---> Selling Continues

SGS  Market Timer Status:  SHORT 
SHORT as of the close of Friday Jun 03, 2022
Previous SGS Status
SGS is a Long-Term (weeks to months) Timer
Why Market Timing Is A Mus

The Federal Reserve's plan to fight inflation (raising interest rates and aggressively unwinding the balance sheet) is in progress now.  That plan will run the economy and financial markets into the ground.  At some point, hopefully sooner than later, the Fed will panic, and at the minimum, the Fed will stop its QT.  As Jamie Dimon explained it well last week, a financial storm is heading our way.

SGS Market Timer

As of the close of last Friday (6/10), the value of SGS was calculated to be -377 and the status of SGS remains SHORT. 

S&P 500 Support And Resistance Levels

Support and resistance levels for SPX for this week are shown above.  I expect the Fed to rush in to shore up indices once SPX starts to test 3500 sometime soon.  If the Fed does not intervene, SPX could sell further to 3200 - 2500 range.

My Plan

I am putting my remaining cash into SDS 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.