Last week on my way to Disney, I was listening to an early June Gabriel Wisdom show interview with Larry Pesavento of www.tradingtutor.com. Pesavento called the 08 market decline a week or two before it happened saying his technical indicators indicated a severe decline happening almost immediately. On this latest interview he said his indicators were more negative than they were in 08 and the market would go lower in this crash. Another interview on a later show was with Bennett McDowell of www.traderscoach.com. His indicators show the DJIA will increase within the next one – two years to at least 18k and possibly 21k. Now that you know exactly where the market is headed, you can invest accordingly.
My indicators say it is time to buy something. Investors business daily says the market is in correction. The S&P500, DJIA, Nasdaqcomposite, and almost every other index is above its 50 day moving average and the going up.
The sum of the deviations (328,449,577) is up for the last two weeks – time to invest.
The DJ Wilshire 5000 index is above its 50 day moving average and the average is increasing – time to invest. Both trends are up – time to buy. SAutomotive is #01 and I own it in IRA#2 but it is a buy in IRA#1. JapanSmallerCompanies is #02 but its deviation has not been increasing for the last 2 weeks so it is not a buy. SBiotechnology is #03 and is a buy in IRA#2.
My current investments:
SAirTransportation has a price of $48.13, a sell price of $46.34, a relative rank of 21, and is a hold until if falls below the sell price or I need to sell it to buy something else.
SAutomotive has a price of $49.58, a sell price $47.10, a relative rank of 01, and is a hold in IRA#2 and a buy in IRA#1.
SBrokerage&InvestmentMgnt has a price of $61.48, a sell price $59.58, a relative rank of 15 and is a hold.
SBiotechnology has a price of $150.15, a sell price TBD, a relative rank of 03 and is a buy in IRA#2.
My portfolio changes this weekend:
IRA #1 – Buy SAutomotive
IRA #2 – Buy SBiotechnology
My portfolio market exposure after this weekend’s changes
IRA #1 – 100% invested
IRA #2 – 80% invested