Sunday, March 12, 2023

Alarms Are Ringing

SGS Market Timer Status:  SHORT 
SHORT as of the close of Friday March 10, 2023 
Previous SGS Status

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

Alarms are ringing loudly this weekend in the Federal Reserve building in Washington DC as the Fed wonders if the failure of Silicon Valley Bank is the tip of an iceberg of small bank failures across the county.  The Fed's own economics are warning stock and real estate prices could tumble significantly   The Fed is holding an emergency meeting tomorrow. 

At this point, there is a good chance that the Fed announces a 25 BPS rate hike and not a 50 BPS rate hike in the next FOMC meeting on March 22.   Also, the Fed might decide, during their emergency meeting tomorrow, to suspend their QT program or to reduce its size substantially. 

SGS Market Timer

As of the close of last Friday (3/10), the value of SGS was calculated to be -555.  The status of SGS changed from LONG to SHORT.

S&P 500 Support And Resistance Levels

Support and resistance levels for SPX for this week are shown above.  Indices are oversold short-term and there is a good chance that we see a short-covering rally early this week.

My Plan

Per my plan I opened a new long position in SMH last Monday.  Now with SGS turning SHORT, my plan is to close my long positions and open a position in SDS sometime early 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.