24.07.2022 Markets were higher for the week as the weaker “expensive stocks” of last year finally broke out of the bottom. FEAR disappeared as some yields turned out to be better than expected and long-term interest rates fell. So the indices are back up near the green line (as always).
The Fed is likely to raise short-term interest rates by 3/4 of a point on July 27, and many expect more tightening to come. But Fed tightening and a slower economy have already led to that Goods to drop 17% from highs and in the long run Interest rates descend. Weaker commodities such as steel, copper, aluminum, silver and lumber are now in bear markets (downtrends).
Eventually the Fed will realize that they tightened a year too late and probably tightened too much. Once the market and investors realize that the July 27 Fed hike may be the last, we may see a stronger rally in the markets (backing up near the green lines).
But for the markets to return to the January highs, we will likely need another “sugar high” of printing from the FED. It’s entirely possible that the Fed could reverse course and start printing again before the November election…
The the strongest leaders now back to green zones for weekly buy signals below. Big market sell-offs like ours help us identify which investments are the strongest (still above the green lines). Leading energy, commodity and chemical stocks should be able to retest recent highs.
If you continue to follow the Green Line system, your money should flow into the strongest areas and your account value should grow in both bull and bear markets.
More action this week on Day trading scroll charts.
We didn’t have many intraday ones Trade notice signals recently as volume was too low with buy signals. These low buy signals usually pop up and disappear quickly. We like to see high volume on rallies.
For the week, the Dow is up 2.05%, the S&P 500 is up 2.59% and the NASDAQ 100 is up 3.47%. Major stock indices are currently below the green lines (AVOID and own stronger investments here).
The Inflation index (CRB) increased by 1.27% for the week and is above the green line, which indicates economic expansion.
Bonds are up 2.08% for the week and are well below the green line, indicating economic expansion.
The US DOLLAR is down 1.20% for the week and is well above the green line.
MONEY WAVE BUYS FAST
Be patient and WAIT for Green Zone buy signals!
LONG-TERM INVESTMENTS (It’s hard to find many long-term ones now because most conventional investments no longer require an 80-RP.)
Top 100 list updated on July 1, 2022
Dividend Growth Portfolio
ETF sector rotation system updated
Dogs of the DOW system
Long-term strategy for IRAs and 401k plans
CNN’s Fear and Greed Index
Investment charts with scrolling Stage Chart
Warning! Market Risk Medium (YELLOW). The probability of successful short trades is higher when the % of the stock is above the 50 day moving average. below 20.
Tell your friends about the Green Line and Helping animals.
QUESTION: Jose M writes: “This morning I seem to be having difficulty finding the money wave chart on the ETF. Thank you.”
The Money wave are the red and green areas at the bottom of the chart. Buy when the money wave dips into the Green Zone and then rises above 20.