Sunday, January 29, 2023

Extreme Volatility And Chaos Is The New Norm Now

SGS Market Timer Status:  LONG 
LONG as of the close of Friday January 6, 2023 
Previous SGS Status

SGS is a Long-Term (weeks to months) Timer
SGS Performance Data (New)
Why Market Timing Is A Must

The influx of millions of new and inexperienced traders using trading apps on their smartphones and commission-free trading platforms in recent years has contributed to the increased volatility and unpredictability seen in major financial market indices. These traders, who have very little or no understanding of the market or the companies whose stocks they are trading, are more likely to make emotional trading decisions, which has lead to large price movements and increased volatility of indices.   In short, extreme volatility and chaos exhibited by major indices in recent months is the new norm now.

SGS Market Timer

As of the close of last Friday (1/27), the value of SGS was calculated to be +183.  The status of SGS remains LONG.

S&P 500 Support And Resistance Levels

Support and resistance levels for SPX for this week are shown above.  SPX closed above its PDL-1 last week.  That is bullish and signals higher prices are ahead for major indices.

My Plan

I'm planning to open new long positions in SSO and XYL 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.