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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