Short term bottom may be in.

September 30, 2014
If this is a true hollow red bottoming candle then a short term bottom is in.

If this is a true hollow red bottoming candle then a short term bottom is in.

Very oversold and ripe for a bounce. Oversold RSI here are almost always great buying opportunities.

Very oversold and ripe for a bounce. Oversold RSI here are almost always great buying opportunities.

We went long a 5% position in EPI to put our money where our mouth is. High SCTR rank means it should blast off if this is indeed a bottom.

We went long a 5% position in EPI to put our money where our mouth is. High SCTR rank means it should blast off if this is indeed a bottom.


More upside but at a slower pace.

September 6, 2014

Looks like a BULL FLAG to me...

Looks like a BULL FLAG to me…

Daily price action is moving right along its long term mean trend line - neither overbought or oversold.

Daily price action is moving right along its long term mean trend line – neither overbought or oversold.

Weekly STOCHASTIC still heading higher. Watch for it to bow over and cross below 80 to lighten up portfolio to 20% cash.

Weekly STOCHASTIC still heading higher. Watch for it to bow over and cross below 80 to lighten up portfolio to 30% cash.

Still not overbought. Heading higher. Lighten up portfolio to 20% cash when RSI is well above 70 AND the NYSI readings turn negative.

Still not overbought. Heading higher. Lighten up portfolio to 20% cash when RSI is well above 70 AND the NYSI readings turn negative.


More upside but at a slower pace?

August 25, 2014

SPX tracking right ON mean regression line now means FAIRLY valued. Future gains should continue to track along regression line (reduced pace from past weeks) unless news dictates otherwise.

SPX tracking right ON mean regression line now means FAIRLY valued. Future gains should continue to track along regression line (reduced pace from past weeks) unless news dictates otherwise.

RSI is still not overbought = more upside is still available.

RSI is still not overbought = more upside is still available. Think about lightening up a little when RSI hits 70 or more.


Where do we go from here?

August 18, 2014
We watch for the RSI to become overbought, and then lighten up a little when it does. Right now it is bouncing off oversold. Plenty of room for more upside right now.

We watch for the RSI to become overbought, and then lighten up a little when it does. Right now it is bouncing off oversold. Plenty of room for more upside right now.


Bottom is in and SPX breaks out above 50 EMA (new support)

August 16, 2014

Bullish MACD cross and price break out above 50 EMA confirms bottom and provides new support. RSI is nowhere near overbought yet. Plenty of upside available from here.

Bullish MACD cross and price break out above 50 EMA confirms bottom and provides new support. RSI is nowhere near overbought yet. Plenty of upside available from here.

NYSI turns bullish, next leg up is underway. RSI is oversold and turning UP now.

NYSI turns bullish, next leg up is underway. RSI is oversold and turning UP now.


Timing Indicator $NYSI – Looks like a short term BOTTOM here.

August 11, 2014

Check out this chart. Every time the RSI gets oversold like this, its a short term market bottom. We don’t think this will be an exception.

Short term bottom looks imminent.

Short term bottom looks imminent.

We expect the SPX to back test the broken 50 EMA at 1944.

We expect the SPX to back test the broken 50 EMA at 1944. Negative divergences have been worked off and there seems to be good support at 1902. The last two times SPX broke its 50 EMA, it rallied right back through to new highs.

 

 


Update

July 29, 2014

According to the charts below, PRECIOUS METALS and ENERGY should be the best performing sectors right now. The stock market is in LATE STAGE bull market which we anticipate will correct in April and May, rally after June 15th, then TOP out on or about September 11th. Unlimited money printing and currency debasement confuses the issue, but the FED KNOWS IT NEEDS TO LEVEL OFF THIS STOCK MARKET BUBBLE OR FACE A POSSIBLE GLOBAL FINANCIAL COLLAPSE and we believe they are taking steps to do so, regardless of what happens to their so-called economy. PRE-EMPTING A BURSTING BUBBLE EQUITY COLLAPSE WILL TAKE PRECEDENCE OVER EVERY OTHER DECISION THE FED MAKES. We are witnessing the LEVELING OFF of the stock market as we write this. Stocks will also be adjusting to a higher interest rate environment, since the FED CANNOT ALLOW THE DOLLAR TO COLLAPSE. Look for Safety and Value stocks. SELL high P/E and stocks that do not perform well when interest rates rise. keep an eye on the MONTHLY charts, as well as the DAILY and WEEKLY charts. Expect a lot more volatility, whipsaw, insane market moves, and sucker punches. Make sure your DAILY and WEEKLY and MONTHLY charts are in your favor before buying anything.

We are exercising EXTREME caution now.

Corporations may be able to cook their books for a long, long time, using QE money hordes they borrowed and continue to borrow at near zero percent interest.  They are using these funds to manipulate earning per share.

Money printing and debasement will result in ALL ASSET PRICES (except bonds) heading higher long term, and a lot of the monthly charts have been PERMANENTLY corrupted by all the irrevocable QE “Infinity” underway. QE Infinity = Inflation = STOCK MARKET Infinity? There are TWO economies: the HAVES and the HAVE NOTS. One of them is doing quite well… the other is not.

Wishing you the very best trades,

Alex Nason

Best Guess: We are in a LATE BULL MARKET as of 12/31/13

 

12/31/13: LATE BULL MARKET

 

12/31/13: LATE BULL MARKET


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