MONTHLY CHART GOES NEGATIVE ON RSI AND MACD WITH OVERBOUGHT STO

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.

OVERBOUGHT – EXERCISE CAUTION HERE

Overbought RSI either means we are at a short term TOP or that we should AT LEAST lighten up.

Overbought RSI heading lower, MACD and STO also looking tired and topping out or heading lower.

MONTHLY STOCHASTIC is heading lower (bearish) and we do not want to be buying into a bearish STO. Check ALL your monthly charts for BEARISH STO and AVOID those investments.

Cautiously Bullish

Oversold RSI and hollow red bottoming candles depict a possible EXCELLENT buying opportunity here.

This chart shows what looks like an excellent short term buying opportunity! Look at the oversold RSI and what happened in the past.

This LONG TERM chart is why we are CAUTIOUSLY bullish. It’s VERY overbought and WAY above its ‘green line’. That’s why our portfolio is an INCOME FACTORY with enough yield and cash in it for us to ride out a crash with plenty of money to “pay the bills”.

Short term bottom may be 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.

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.

Looks like a BULL FLAG to me…

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 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.

More upside but at a slower pace?

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. Think about lightening up a little when RSI hits 70 or more.

Where do we go from here?

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.