Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Silver Bulls Will Be Handsomely Rewarded - 21st Sep 20
Fed Will Not Hike Rates For Years. Gold Should Like It - 21st Sep 20
US Financial Market Forecasts and Elliott Wave Analysis Resources - 21st Sep 20
How to Avoid Currency Exchange Risk during COVID - 21st Sep 20
Crude Oil – A Slight Move Higher Has Not Reversed The Bearish Trend - 20th Sep 20
Do This Instead Of Trying To Find The “Next Amazon” - 20th Sep 20
5 Significant Benefits of the MT4 Trading Platform for Forex Traders - 20th Sep 20
A Warning of Economic Collapse - 20th Sep 20
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20
Does the Stock Market Really "See" the Future? - 12th Sept 20
Basel III and Gold, Silver and Platinum - 12th Sept 20
Tech Stocks FANG Index Nearing Critical Support – Could Breakout At Any Moment - 12th Sept 20
The Tech Stocks Quantum AI EXPLOSION is Coming! - 12th Sept 20
AMD Zen 3 Ryzen 4000 Questions Answered on Cores, Prices, Benchmarks and Threadripper Launch - 12th Sept 20
The Inflation Mega-trend is Going Hyper! - 11th Sep 20
Gold / Silver Ratio: Slowly I Toined… - 11th Sep 20
Stock Market Correction or Reversal? The Jury Isn't Out! - 11th Sep 20
Crude Oil – The Bearish Outlook Remains - 11th Sep 20
Crude Oil Breaks Lower – Sparking Fears Of Another Sub $30 Price Collapse - 11th Sep 20
Inflation by Fiat - 10th Sep 20
Unemployment Rate Drops. Will It Drag Gold Down? - 10th Sep 20
How Does The Global Economy Recover After This Global Pandemic? - 10th Sep 20
The Best Mobile Casino - 10th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Stock Market Trends Update, Short Down, Medium Up, Long Down

Stock-Markets / Stock Index Trading Dec 06, 2009 - 10:18 PM GMT

By: Patrice_V_Johnson

Stock-Markets

Best Financial Markets Analysis ArticleLONG-TERM TREND (> 1YR) OF THE MARKETS: DOWN -
(See Long-Term Chart of the Dow Jones Industrial Average since 1974 for further details)


THE J.E.D.I. WAY’S LONG-TERM (or POSITIONAL) HOLDINGS [> 1yr]: ______________
ProShares Ultra Short Gold (Ticker Symbol: GLL)
ProShares Ultra Short QQQ (Ticker Symbol: QID)
ProShares Ultra Short Financials (Ticker Symbol: SKF)
Note: The above portfolio was selected based on my analysis of the MONTHLY CHART below of the Dow Jones Industrial Average.

----------------------------------------------------------

INTERMEDIATE TREND OF THE MARKET (Three weeks to 1 Year): UP
(See Weekly Chart of the Dow Jones Industrial Average for further details [below the long-term chart of the Dow Jones Industrial Average])
THE J.E.D.I. WAY’S INTERMEDIATE TERM HOLDINGS (3 weeks to 1 year):
NONE.
Note: This was based on my analysis of the WEEKLY CHART below of the Dow Jones Industrial Average.

-----------------------------------------------------------

SHORT-TERM TREND OF THE MARKET (less than 3 weeks): DOWN
(See Daily Chart below of the Dow Jones Industrial Average for further details [below the Weekly Chart of the Dow Jones Industrial Average])

THE J.E.D.I. WAY’S SHORT-TERM HOLDINGS (less than 3 weeks):
NONE.
Note: This was based on my analysis of the DAILY CHART below of the Dow Jones Industrial Average.

LONG-TERM CHART OF THE DOW JONES INDUSTRIAL AVERAGE

NOTE: When the major trend was up (that is when prices were trading above the long-term trend-line above), we bought the dips above it and sold the rallies from 1974 to 2007. (vis-a-vis "bought low and sold high")

Since the major trend has changed from up to down, all rallies beneath the major trend line should technically be sold! And then bought back when the market dips. (vis-a-vis "sell low and buy to cover even lower") otherwise invest in ETF stocks whose prices go up when the markets go down like or similar to the ones in THE J.E.D.I. Way’s LONG-TERM PORTFOLIO. This strategy should be used in my opinino until the resitance line on the monthly chart becomes support (or until prices on the Dow Jones Industrial Average closes above 14,175 and stays at or above this price level for at least three consecutive months!!!)

This pretty much explains why THE J.E.D.I. WAY is holding the above-mentioned stocks for the long-term (>1 year and possibly up to 4 years or longer) whose prices goes up when the price of the DOW goes down.

INTERMEDIATE-TERM CHART OF THE DOW JONES INDUSTRIAL AVERAGE

This pretty much explains why THE J.E.D.I. WAY is not holding stocks for the intermediate term (3 weeks to 1 year) whose prices go up when the DOW goes up.

NOTE: If we were long stocks, I would stay long until prices close below the trend line above (or below the 10,000 price level) and then offset 50 shares of a 100 share position during week two if prices closed below the trendline in week 1 (or closed below the 10,000 price level) then sell the remaining 50 shares of the 100 share long position during week 4 BUT ONLY IF PRICES CLOSED BELOW THE TRENDLINE (or below the 10,000 price level) DURING WEEK 3 because technically, we are suppose to be buying the dips and selling the rallies (or buying low and selling high) in an uptrend (divergence or no divergence!) until the trend changes from up to down (as evidenced by prices closing below a significant trendline or below a certain price level).

But with the negative divergence on this weekly chart accompanied by the long-term trend being down (as per the monthly chart), I would utilize the price information in the DAILY CHART (below) to get me out of long postions in stocks that go up when the DOW goes up.

SHORT-TERM CHART OF THE DOW JONES INDUSTRIAL AVERAGE

NEW ENTRY ALERT(S) FOR MONDAY, DECEMBER 7, 2009:

On Monday, December 7, 2009, The J.E.D.I. Way will go long 100 shares of ProShares Ultra Short RealEstate (Ticker Symbol: SRS) at the market then purchase 100 shares of ProShort Ultra Short Industrials (Ticker Symbol: SIJ) at the market.

NOTE: If filled, we will place a protective stop behind our long position at $3.00 for SRS and $10.00 for SIJ (on the close only) that is good till cancelled (or good for 60 days)...whichever is longer. That is SRS has to close at or below $3.00 for us to be out of this position while SRS has to close at or below $10.00 for us to be out of this position.

SUMMARY:

LONG-TERM (> 1 year) -

The J.E.D.I. Way is bearish long-term since the Monthly Chart (above) of the Dow Jones Industrial Average shows that the long-term trend (>1 year) of the market has changed from UP to DOWN. Therfore we will be maintaining long positions in stocks whose prices go up when the price on the Dow Jones Industrial Average decline.

INTERMEDIATE TERM (3 weeks to 1 year) -

The J.E.D.I. Way is bullish but cautious in the intermediate-term (3 weeks to 1 year) since the Weekly Chart (above) shows a negative divergence between prices and our special indicators (Volume, Stochastics and RSI) which together suggest that it is possible and probable that a downside reaction will take place in one of the upcoming weeks ahead that could decide whether the next intermediate-term trend will be SIDEWAYS or DOWN.

Therefore, The J.E.D.I. Way will not be long any stocks in the intermediate term that goes up when the price on the Dow Jones Industrial Average rise.

SHORT-TERM (less than 3 weeks)-

The J.E.D. I. Way is neutral in the short-term since the Daily Chart (above) shows that the short-term trend has changed from UP to SIDEWAYS.

Therefore, The J.E.D.I. Way will note be long any stocks in the short-term that go up when prices on the Dow Jones Industrial Average rise.

Next week, I will be e-mailing the LONG-TERM, INTERMEDIATE-TERM, AND SHORT-TERM TRENDS AND EQUITY HOLDINGS for a specific list of FUTURES and their respective FUTURES OPTIONS.
Until then, thanks for listening, have a great week and good luck in your trading.

Best Regards,
Patrice V. Johnson

E-mail : Patrice@stockbarometer.com if you have any questions about this trade or any other questions or comments.

If you are interested in continuing to receive our advice as your free trial, please click the following link to subscribe.
http://www.stockbarometer.com/pagesJEDI/learnmore.aspx

Important Disclosure
Futures, Options, Mutual Fund, ETF and Equity trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to buy/sell Futures, Options, Mutual Funds or Equities. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this Web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
Performance results are hypothetical. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as a lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
Investment Research Group and all individuals affiliated with Investment Research Group assume no responsibilities for your trading and investment results.
Investment Research Group (IRG), as a publisher of a financial newsletter of general and regular circulation, cannot tender individual investment advice. Only a registered broker or investment adviser may advise you individually on the suitability and performance of your portfolio or specific investments.
In making any investment decision, you will rely solely on your own review and examination of the fact and records relating to such investments. Past performance of our recommendations is not an indication of future performance. The publisher shall have no liability of whatever nature in respect of any claims, damages, loss, or expense arising out of or in connection with the reliance by you on the contents of our Web site, any promotion, published material, alert, or update.
For a complete understanding of the risks associated with trading, see our Risk Disclosure.

© 2009 Copyright Patrice V. Johnson - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules