Sunday, July 2, 2023

SPX 5000 This Year?

SGS Market Timer Status:  LONG 
LONG as of the close of Friday June 9, 2023
Previous SGS Status

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

When it comes to equities, a moderate level of year or year monetary inflation (less than 7%) is a major stimulus for higher prices.  Monetary inflation simply means that our dollar is worth less; therefore, all assets have to be priced higher when they are priced in that less worthy dollar in order to reach the same absolute value.  If your house is valued at 1,000,000 US Dollar at the present time, its price has to be 1,320,000 Canadian Dollar if it's to be sold for Canadian Dollar because a Canadian dollar is worth less than a US dollar. 

At this point, despite the Fed's aggressive interest rate hikes, there is a good chance that our economy experiences moderate inflation for next five to ten years.  In the meantime, all assets, including equities and real estate, are priced higher and higher. There is a good chance that we see SPX 5000 sometime later this year and according to long-term EWA (shown above), we could see SPX at 7700 sometime in the next five years. 

SGS Market Timer

As of the close of last Friday (6/30), the value of SGS was calculated to be +96.  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.

My Plan

I still have 30% in cash and my plan to put that money to work by adding to my positions on days that indices are lower 0.5% or higher.


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..