Strategic Stock Trade
SST Email For 2/4/2019:
Markets continue Trend Bearish as the massive move higher continues. As I have said before, some of the most violent moves higher in the stock market occur within a bear market. That is exactly what is occurring at the present time.
Just as old wall street has declared the December lows the bottom and we will not see those lows occur again, the markets have quietly become overbought, not just on the daily time frame, but the Weekly time frame as well. This is where our strategic decision making process occurs.
This is the first time since last August that the S&P 500 has become overbought on the weekly time frame.
The most important difference this time versus the August time frame is that the Trend is Bearish currently versus a Bullish Trend this past August.
Thus, I continue to believe that our process will ultimately prevail. It is NOT different this time. Yes, shorting can be difficult sometimes, but the path of least resistance is lower.
The economic data that continues to come out suggests that the year-over-year shows growth is slowing, not accelerating.
This is readily seen in the U.S. GDP numbers: Q2 2018 = 4.2%
Q3 2018 = 3.4%
Q4 2018 = 2.5% (estimated)
In other words, the Trump tax cut was a 1-time bump and we are reverting to the 2009-2018 average of 2.23% growth. Meanwhile,, Bush43, Obama, and Trump have added $17 trillion in debt
And finally, the VIX. ( Volatility Index) closed red for the 6th week in a row this past week. This was the 1st time since August 2016. It has never closed red 7 weeks in row going back over 10 years.
Turning to the SST NH / NL Charts: the monthly closed with a 1,216, Quarterly = 450, Yearly = 97, and Weekly = 319.
The SST Bounce signal remains intact for the 37 day in a row. We do not buy up here
The SST Daily Index Numbers Closed Trading As Follows:
NAZ = 84.2
DJIA = 94.92
IWM = 91.80
S&P = 92.54
The SST Weekly Index Numbers Closed Trading As Follows:
NAZ = 95.06
DJIA = 73.6
IWM = 95.82
S&P = 91.64