SGS Market Timer Status: LONG
LONG as of the close of Friday July 14, 2023
Previous SGS Status
SGS is a Long-Term (weeks to months) Timer
SGS Performance Data
Why Market Timing Is A Must
The Bull Case
- Many studies have clearly shown that nearly half of recent inflation in the economy is due to price gouging by companies and cooperate greed that very likely continue until the economy enters into a deep recession. In the meantime, companies will continue to post good earnings and their stocks will go higher and higher.
- Positive effects for companies and stocks during inflation:
- Increased revenue: During inflation, companies can often increase the prices of their products and services, leading to higher revenue and potentially improved profitability.
- Asset appreciation: Tangible assets like property and equipment may appreciate in value during inflation, positively impacting the balance sheets of companies that own these assets.
- Debt repayment advantage: In times of high inflation, companies with fixed-rate debt can benefit as the real value of their debt decreases over time.
- Increased revenue: During inflation, companies can often increase the prices of their products and services, leading to higher revenue and potentially improved profitability.
- Because of dysfunctional immigration and temporary work policies, there are significant labor shortages in just about any industry in the US. As a result the US economy is experiencing full employment which means continued higher spending by a confident consumer who is not worried about facing unemployment. Also, full employment brings substantially more money to the market via employees' retirement contributions.
- Last week Russell 2000 small cap. index breached its downtrend line and closed above it and its 38.2% Fib retracement level on its weekly chart shown above. Also, breadth (A/D line) for both NYSE and NASDAQ have improved substantially in recent weeks, signaling higher prices for all major indices are very likely ahead.
SGS Market Timer
As of the close of last Friday (7/21), the value of SGS was calculated to be +201. The status of SGS remains LONG.
S&P 500 Support And Resistance Levels
My Plan
Last Thursday morning, I moved half of my remaining cash (10%) into QQQ. My plan is stay with my long positions for now.
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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
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
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