This monthly chart of Apple scares the beejeesus out of me.
When the RSI on our NYSI chart drops this low and then turns – it’s time to BUY equties! We actually went long on June 16th, when this indicator got too oversold – and we are very happy we did! (So far). The black line on the chart is the SP 500. Notice how the oversold RSI turns correspond to EXCELLENT buying opportunities – in almost every instance!
For the first time in YEARS – the monthly chart RSI has broken below 70 (SELL SIGNAL) and the MACD has crossed (SELL SIGNAL). With these two indicators on a SELL SIGNAL, added to an overbought STOCHASTIC (ALSO CROSSED TO A SELL SIGNAL) this is a time for EXTREME CAUTION. WE ARE 100% CASH NOW. (We have been 100% CASH since January 1st).
Adding INSULT TO INJURY, have a look at the US Dollar Chart below – which obviously shows a flight to cash and dollars (worldwide) beginning way back in August of 2014 and showing no signs of abatement. Economic World War 3 has begun!
Let’s also look at the collapsing OIL chart – a chart that the stock market usually follows. The last time OIL collapsed like this was during the CRASH or 2008.
And FINALLY – the SLEEPING GIANT – GOLD – (below) has awoken from its LONG LONG SLUMBER.
CAUTION IS ADVISED UNTIL OUR FAVORITE INDICATOR ($NYSI) – BELOW – MOVES TO OVERSOLD RSI AND THEN TURNS POSITIVE. THIS HAS PROVEN TO BE AN EXTREMELY ACCURATE BUY/LONG INDICATOR.