Sunday, March 5, 2023

Higher Interest Rates Are Baked-in

SGS Market Timer Status:  LONG 
LONG as of the close of Friday March 3, 2023 
Previous SGS Status

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

Last week indices rallied despite rising interest rates across the entire debt spectrum. That is bullish and signals that higher interest rates are "baked-in" now, and more importantly, the Fed is limited as to how far they could possibly raise short-term rates.  Currently the market estimates that limit ("terminal rate") to be around 5.5% and that is also baked into equity markets.

SGS Market Timer

As of the close of last Friday (3/3), the value of SGS was calculated to be +82.  The status of SGS changed from SHORT to LONG.

S&P 500 Support And Resistance Levels

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

My Plan

I kept my long positions and planning to put my remaining cash into SMH 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.