Has The U.S. Economy Plunged Into A Depression?

Has The U.S. Economy Plunged Into A Depression?

“Face reality, and that means admitting that “the U.S. economy has plunged into a depression.”

This is already the worst economic downturn that America has experienced since the Great Depression of the 1930s, and we are right in the middle of the largest spike in unemployment in all of U.S. history by a very wide margin.

Of course, it was fear of COVID-19 that burst our economic bubble, and fear of this virus is going to be with us for a very long time to come.  So we need to brace ourselves for an extended economic crisis, and at this point, even Time Magazine is openly referring to this new downturn as an “economic depression”.

Needless to say, there will be a tremendous amount of debate about how deep it will eventually become, but everyone should be able to agree that our nation hasn’t seen anything like this since before World War II.

In order to prove my point, let me share the following 10 numbers with you…

#1 According to a study that was just released by the National Bureau of Economic Research, more than 100,000 U.S. businesses have already permanently shut down during this pandemic, and that represents millions of jobs that are never coming back.

#2 The Federal Reserve Bank of Atlanta is now projecting that U.S. GDP will shrink by 42.8 percent during the second quarter…

“A new GDP forecast from the Federal Reserve Bank of Atlanta for the three months through June estimates an unprecedented drop of 42.8 percent. The bank describes the data as a “nowcast” or real-time, compared with the official government report of GDP, which is dated. The first-quarter preliminary data, which showed a 4.8 percent dip, included a limited period of impact from COVID-19.”

#3 On Friday we learned that U.S. retail sales were down 16.4 percent during the month of April, and that is a new all-time record.

#4 U.S. factory output was down 13.7 percent last month, and that was the worst number ever recorded for that category.

#5 U.S. industrial production fell 11.2 percent last month, and that represented the worst number in 101 years.

#6 On Thursday, we learned that the number of Americans that have filed initial claims for unemployment benefits during this pandemic has risen by another 2.9 million, and that brings the grand total for this entire crisis to 36.5 million.  To put that number in perspective, at the lowest point of the Great Depression of the 1930s only about 15 million Americans were unemployed.

#7 According to the Federal Reserve Bank of Chicago, the real rate of unemployment in the U.S. is now 30.7 percent.

#8 According to a survey Fed officials just conducted, almost 40 percent of Americans with a household income of less than $40,000 a year say that they have lost a job during this crisis.

#9 One study has concluded that 42 percent of the job losses during this pandemic will end up being permanent.

#10 According to a professor of economics at Columbia University, the U.S. homeless population could rise by up to 45 percent by the end of this calendar year.

We have never seen economic numbers this horrifying, and more awful economic numbers are coming in the months ahead.

At this point, things are so bad that even Fed Chair Jerome Powell is openly admitting that he doesn’t really know how long this new economic downturn will last…

“This economy will recover…We’ll get through this. It may take a while. It may take a period of time. It could stretch through the end of next year,” Powell said during a rare televised interview that aired on “60 Minutes” Sunday night. “We really don’t know. We hope that it will be shorter than that, but no one really knows.”

In the months ahead, there are a few sectors that you will want to keep a particularly close eye on, and one of them is the commercial real estate market.  The following comes from Zero Hedge

“Fast forward to today, coronavirus outbreak, and the ensuing lockdown, has essentially frozen the commercial real estate market. Buildings that were once used for restaurants, offices, hotels, spas, and or anything else that is classified non-essential have seen soaring vacancies.

This is single handily sending the commercial property market into chaos. As vacancies soar, tremendous downward pressure is being put on almost every asset class tied to commercial real estate.

The latest TREPP remittance data compiled by Morgan Stanley showed a quarter of all commercial mortgage-backed securities (CMBS) could be on the verge of default.”

I am personally convinced that we are on the precipice of the greatest commercial real estate implosion in American history.

As the dominoes tumble, it is going to send wave after wave of devastation through the financial industry, and it is going to make the subprime mortgage meltdown of 2008 look like child’s play.

But at least bankruptcy lawyers will have plenty of work.  Last week we learned that J.C. Penney filed for Chapter 11 bankruptcy protection, and of course the bankruptcies that we have seen so far will just be the tip of the iceberg.

I think that politicians all over America are going to deeply regret overreacting to COVID-19, because nobody is going to be able to put the pieces back together now that our economic bubble has burst.

Sadly, very few people understood how shaky our debt-fueled economic “boom” was, and ultimately it didn’t take that much to push us into a new economic depression.

And now every additional crisis that comes along is just going to escalate our economic troubles.  This is going to be one very long nightmare, and there will be no waking up from it any time soon.

Even before COVID-19 came along, homelessness had become a massive problem in many of our major cities, and now tent cities are rapidly multiplying in size.

There is going to be so much economic pain in the months ahead, and it could have all been avoided if we had made much different choices as a nation.

But we didn’t, and so now we all get to pay the price.

Mr. Snyder wrote this article and I respect his opinion. I am not taking issue with his story, but he is a respected conservative voice in a world of noise.

So, I ask you, what if he is correct in his judgment and collapse is coming sooner than later?

Are you prepared for what is going to happen to your retirement and investment account values?

Are you sheltered from those accounts declining 40%? 50%, 60%, or more.

The Wealth Preserver Membership can protect your account from any stock market collapse. Please know that until it does collapse, your investments continue to grow as usual. 

Jed Clampett’s Oil Trade Signals

Jed Clampett’s Oil Trade Signals

Jed Clampett’s Oil Trade Signals are unmatched because they make logical common sense.

J.D. “Jed” Clampett, usually called Jed Clampett, is the patriarch of the family with his mother-in-law Granny, nephew Jethro, and daughter Elly May.

Although Jed had received little formal education, Jed Clampett has a good deal of common sense.

So, lets take a look and what is occurring in the markets that started with the Corona-Crash, and see if have Jed’s common sense to make tycoon size profits in OIL… even if you’re not an oil type of investor! It is just common sense!

Just 2 days ago, Oil futures “May 2020” contract reached about a minus -$35 dollars per barrel. Understand that this is a DOMESTIC market and it does not reflect the world price of oil. But all oil is falling.

InterAnalyst Members, who trade oil and sold or shorted when the signals came out on the monthly, weekly, and daily charts below are smiling, but not as much as they will be when the signals turn bullish!

(Please click on the charts to maximize)

The contractual terms of the WTI Crude Oil contracts traded on the CME NYMEX market are based upon the domestic pipeline delivered crude oil contract.

This is not the crude in tankers. Because of the sudden drop in domestic demand thanks to the lockdown, there is no demand for Gasoline and even Jet Fuel has declined in demand.

This resulted in the filling of the majority of storage facilities inside the United States for the supply was coming in by pipeline rather than trucks or tankers. This is why the domestic crude oil market collapsed ahead of expiration. The GLUT is reflected in the United States and this is impacting domestic production that will lead to the drop which in turn will swing back and eventually materialize in higher prices and production then declines and jobs are lost.

This situation does NOT reflect the scope of the international market in Asia or Europe. BRENT Crude oil is the international benchmark reference index price for the majority of global oil markets. BRENT Crude prices are holding above $25 dollars per barrel for immediate physical delivery.

So, Jed…

Looking at the price chart of DBO, the ETF we track for OIL traders, once the economic news settles down, and it will, do you think OIL will go back to a normal price? It is 95% off its highs! 

Are you kidding? Jed already bought by the time you read “Are you kidding?”.

Let me ask you a second question. Once the Corona-virus settles down, and it will, do you think people around the world will need oil again? How about when a Corona-vaccine is developed and all economies explode?  That day could make you 100 – 500% alone.

We have Jed’s common sense, do you? Best of all, we will track it all for you in the members blog.

Once the economic news settles, we will provide our members a signal that will explode their profits. And as it goes up and down along the way, which it certainly will, why not capture gains and the avoid declines the whole?

This will be a bullish move of historic proportions and can set you up for historic profits… the kind you’ll read about in the history books. 

Jed Clampett knows this one is a “No Brainer”.

And because it is obvious, if you become a member today, we are offering you a 25% Lifetime Discount.  Use the Promo-Code “Wealth25” when you sign up for your 15-day free trial.

Here’s When The Bear Market Rally Ends

Here’s When The Bear Market Rally Ends

This Bear Market Rally is still not complete but should be shortly and Here’s When The Bear Market Rally Ends.

We are actually still in a bear market rally with today clearly being another ‘green’ day, it is likely the rally will continue until the herd jumps in again.

It is not uncommon what-so-ever to re-touch near a 50% level during voracious bear markets, however, at this point you can actually argue the market is more over-valued now given the environment than when the Standard & Poor’s was near 3400 ironically enough.

The markets are already trying to price in a possible slowdown in the COVID-19 pandemic. But, even if the Pandemic miraculously disappeared today, the massive economic shock won’t disappear anytime soon.

Major indices all over the world have already plummeted into Bear Territories and the recent rally is simply a correction. In fact, if you look at previous bear markets, you will find plenty of temporary Bullish rallies within the larger Bearish move.

So, do not get emotionally carried away by the bull run right now. Shortly, we will be dealing with bad economic data, a bigger than 2008 recession (likel):
  • Falling Output. Less will be produced leading to lower real GDP and lower average incomes. Wages tend to rise much more slowly or not at all.
  • Unemployment. The biggest problem of a recession is a rise in cyclical unemployment. Because firms produce less, they demand fewer workers leading to a rise in unemployment.
  • Higher Government Borrowing. In a recession, government finances tend to deteriorate. People pay fewer taxes because of higher unemployment and they need to spend more on unemployment benefits. This deterioration in government finances can cause markets to be worried about levels of government borrowing leading to higher interest rate costs. This rise in bond yields may put pressure on governments to reduce budget deficits through spending cuts and tax rises. This can make the recession worse and more difficult to get out of. This was particularly a problem for many Eurozone economies in the aftermath of 2009 recession.
  • Hysteresis. This is the argument that a rise in temporary (cyclical) unemployment can translate into higher structural (long-term) unemployment. hysteresis
  • Falling asset prices. In a recession, there is less demand for buying fixed assets such as housing. Falling house prices can aggravate the fall in consumer spending and also increase bank losses. This fall in asset prices is particularly a feature of a balance sheet recession (e.g. 2009-10) recession.
  • Falling share prices. Lower profits lead to lower levels of share prices.
  • Social problems related to rising unemployment, e.g. higher rates of social exclusion.
  • Increased inequality. A recession tends to aggravate income inequality and relative poverty. In particular, unemployment (relying on unemployment benefits) is one of the largest causes of relative poverty.
  • Rise in Protectionism. In response to a global downturn, countries are often encouraged to respond with protectionist measures (e.g. raising import duties). This leads to retaliation and a general decline in trade which has adverse effects.

These factors are not at the top of the news yet cycle right now. But I assure you that when the Corona-Virus takes a back seat to the Presidential Election, the reality will set in and we will witness a new test of the bottom.

So, such rallies as the one we are seeing now will be sold aggressively and markets will plummet into fresh lows. Until a 50%-55% drop has happened, we can’t start thinking about bottom formation.

Conservative investors should continue to follow the Wealth Preserver signals as is proven historically, the signals will protect you from every market crash that matters.

As for Daily and Weekly traders, they should follow their Wealth Maximizer and Maximizer Pro signals according to the Pro’s 5 Minute Secret.

Marxism, Buffett, Dalio, Stalin & The Bottom

Marxism, Buffett, Dalio, Stalin & The Bottom

As always, the Democrats just can’t stand the fact that Trump might take credit for helping people and have blocked and relief package. Democrats claimed in true Marxist fashion in the Senate that the GOP’s push to set aside $425 billion for loans to help select companies and industries, dubbing it a “slush fund” for the Treasury to direct as it sees fit. They said the bill is tilted toward corporations instead of working people. What they fail to even address is that those working people rely upon small businesses the Democrats hate so much which provides 70% of their employment.

Small businesses have been ordered to close down. They cannot pay employees and nobody has suspended their rents. The destruction of small businesses will be devastating to the economy and this is all about playing politics. I am saddened.

The closing for March, if down from last Friday may spark more serious liquidation as Hedge Funds dump everything and some may more to suspend withdrawals as is taking place in European bond funds. The Solus Alternative Asset Management LP, Hedge Fund, known for its investment in retail chain Toys “R” Us, informed its investors that it is shutting its flagship fund and will restrict redemption’s as it works to sell off holdings.

Even Warren Buffett’s Berkshire Hathaway may have lost more than $70 billion on its 10 biggest investments. This type of decline shows that the buy-and-hold strategy fails in a serious market correction. Ray Dalio, who will go down in history for his proclamation that “cash is trash” on January 21, 2020, has lost probably more than $4 trillion in Bridgewater.

Where the 2007-2009 Crash took out Lehman Brothers and Bear Stearns, this time we will see Hedge Funds go down in flames. This undermines liquidity and makes the market vulnerable because market-makers pull back just to survive. 

We are headed into a Global Recession which could become even worse than the Great Depression. Here’s why?

This time we have politicians taking advice from the medical industry. The medical people who do not understand that you cannot shut down the economy on this grand scale because of the devastation is insurmountable to people, their jobs, and wiping out their pensions. This economic shut down on such a massive scale is far worse than if the Corona death toll was even 8%.

Never before has the economy been crashing with such speed for this is orchestrated by people who only look at how diseases spread and not how the economy contracts.

See the source image

Yes, it is true that if we all stayed home we can even beat the common cold. But the post-coronavirus world is going to be far more damaging to the future than any of these people understand.

To have the Democrats playing politics in the middle of the is just insane.

Liquidity is collapsing everywhere. Bank failures rose after the 1929 crash because liquidity failure with a declining velocity = less money with even less money moving around the economy = recession and potential depression.

A monthly closing on Oil below $20.50 will warn of the economic recession ahead as people stay home and this command of quarantine and social distancing may undermine the very cooperation which is the foundation of civilization. 

If people are afraid to interact and suspect everyone, that is precisely the atmosphere created by Stalin during the Communist era.  We are voluntarily limiting and quickly losing all rights including the freedom of assembly. Even Twitter has shut down those who dissent against the coronavirus and this is calling into question our freedom of speech as well.

InterAnalyst will help guide everyone out of this time of insecurity and political misdirection via selfish ignorance.

Look at the chart below:

Finding The Bottom

As the markets find the bottom, it will be laced with volatility and insecurity with the media frightening you to the point of insecurity. this is not done for YOU as an InterAnalyst member. It is done for those Buy and Holders who never exited at the top and now have been scared into submission. 

However, as an InterAnalyst member,  you recognize that it likely will become the best entry point of your life! Yes, insecurity will be there but you know the stock market is going nowhere!

The stock market never lies and it always returns when there is “blood in the street” and the bottom arrives.

Thus, follow the guideline to a risky to safe entry back into the coming slingshot move.

Step One: Wealth Maximizer Pro (Daily Charts)

When the Daily chart delivers a green signal, jump for joy, then choose to enter a position or wait to see if the daily signal is holding for a few days for stability. If we are at or close to a bottom, volatility will be very high so prepare for it if you choose to trade it.

Step Two: Wealth Maximizer (Weekly Charts)

When the Daily is followed by a Weekly green signal you know that the economy is attempting to settle and gain strength.

You should begin to feel a bit more secure. Entering a bullish position here is a bit less risky because the weekly signal has some economic strength attached rather than pure daily volatility. You can even wait another week to see if it develops more strength.

Step Three: The Wealth Preserver (Monthly Charts)

Once the Green signal has elevated from the Daily to the Weekly and the Weekly has moved into a second or third week of a bullish trend, you may select to beat the green monthly Wealth Preserver signal by entering a bullish position before month end.

If you look at The Wealth Preserver chart above, ask yourself whether you remember the days or weeks Just prior to the bottom green signals in 2003 and 2008?  NOPE, right. You don’t remember them, but what you would have remembered is getting in after preserving your money at the prior top, before the full devastating decline those bear markets delivered.

The same is true now. 

So, the bottom is going to come. You must be patient, it will arrive, it always does!

Enter in when you feel most comfortable, but recognize that the Wealth Preserver has proven to be deadly accurate at economic turning points.

The phrase to be true: “Better Safe, than Sorry!” 

Obviously, entry at any point has its risks, but as you look closely at The Wealth Preserver chart above, making a move using the monthly charts is rarely a poor decision…ESPECIALLY OFF THE BOTTOM.

This time it is coming with a slingshot.

Are Oil Futures Presenting An Evergreen Buy Signal Today?

Are Oil Futures Presenting An Evergreen Buy Signal Today?

Crude Oil is trading up about 10% for the year from last year’s closing of 60.42.

The DBO ETF provides exposure to light sweet crude oil (WTI), which is the most popular oil benchmark in the world for the futures market.

An oil futures contract is an agreement to buy or sell the commodity for a given price at a specified date in the future.  Spot oil prices and front-month oil futures are highly correlated, and for the most part, they’ll track each other closely. However, futures contracts have an expiration date. Anyone holding oil futures contracts on the expiration date must take physical delivery of the commodity. To avoid this, the fund must roll its position over into the next-nearest futures contract before expiration. This process of selling the front-month contract and buying the second-month contract is called “the roll.” If the second-month contract is the same price as the front-month contract during the roll, the fund’s position size won’t change, and its returns will closely mirror those of spot prices.

In reality, front- and second-month contract prices for oil are rarely the same. Due to the cost of storage, it’s common for oil to be priced higher the further out along the futures curve you go, a situation called contango. Most ETFs face contango.  The DBO fund found a better way and rather than mechanically rolling into the near-month oil futures contract, DBO selects the contract from the one-year futures curve that minimizes contango (or maximizes backwardation). Over time, this strategy has proven to aid returns. This can help substantially with market signals because it lowers the marginal spread.

So let’s step back and take a closer look at the charts to see from our Monthly, Weekly, and Daily charts viewpoint on the DBO ETF.

 

Monthly Chart

Looking at the monthly chart, this market is currently in a rising trend. We see here the trend has been moving up for the past 29 months. The previous monthly level low was formed during February 2016, with a brief break in trend during 2017.

 

Weekly Chart

On the weekly level, the last important high was established the week of July 2nd which was up 54 weeks from the low made back during the week of June 19th of 2017. Although we have seen this market has remained a bit weak we will have to wait to validate a further decline against the larger trend.

 

Daily Chart

Our Daily level momentum chart is bullish while the trend in the daily is successive lower peaks since May providing a mixed short-term posture for this market.

Chart Conclusion

When you combine the Monthly, Weekly, and Daily activity, it will not surprise if we see continued sideways movement with a bullish bias. If you are an InterAnalyst Subscriber and follow our Evergreen strategy, look to another green light in your memberships private area.

Prosperously,


*** Do not trade solely based on this post as it may not represent current market conditions. Markets can change abruptly.

Dow Jones Vs Bitcoin & Gold

Dow Jones Vs Bitcoin & Gold

The year to date chart below makes it clear that the US Shares Markets SPY, DJI, QQQ, and the RUT outperformed Gold and Bitcoin since January 1, 2018.

 

Click To Enlarge Chart

 

The Cryptocurrency market remains strongly bearish as does Gold. Both are going to bottom and turn so we will keep our members posted as to when the turn occurs.

In the Dow, we still see next week as a turning point.  We need a closing above 25635 to imply new highs, but a closing above 25432 to stabilize. A closing beneath 25052 will signal a resumption of the decline.

Everything is relative so when we look at the Dow through the eyes of world currencies, it is breaking out to the upside. Keep in mind that it is IMPOSSIBLE to get a major collapse in the US markets when there is a crisis in the world economy that results in a flight to the dollar. All the “Financial Gurus” that have been coming out forecasting the collapse of the US Stock Market are looking only at domestic political issues and rising interest rates. They do not track the global economic picture like socialisms collapse in South America and Europe.  This makes all the difference because capital flows are coming to the USA at this time.

Prosperously,

Another Bitcoin Resurrection?

Another Bitcoin Resurrection?

Is Bitcoin back from the dead or is it a short-term temporary rally before a further and deeper dive? We will see very soon.

Let’s review the Top-Down analysis and get a realistic view of how it looks on all three-time frames, Monthly, Weekly, Daily.

As you look at the BTC Monthly chart, you first notice that it is the monthly time frame which delivers the general overall direction of the price movement. This is where Bull and Bear Markets are born and mature. You can see when the BTC market was a flying bull all the way until November of 2017. It was then slapped with the reality that there are two betting sides; a long and short side.  With trading on the CBOE and CME profoundly kicked off the Crypto Bear Market in January 2018 and millions of novice cryptophytes were shocked. The Chart below has the exit signal we delivered and shows you could have preserved some of your wealth by avoiding the rest of the decline. So, the Monthly Chart depicts a crypto Bear Market for BTC.

The Weekly Chart is the second chart you must review once you have concluded that we are working in the midst of a bear market. How do we view the weekly chart and what is it telling us?

As you can see in the BTC Weekly chart, a green light appeared at the bottom telling us that there are strong technicals validating that a bottom may be in place. Could a rally have started from the bottom?

Before coming to a decision, let’s take a look at the final chart, the Daily Chart:

As you can see, we have a bullish signal on the 16th of July with very strong follow-through after that. Its undoubtedly an indication of a vast amount of financial analysts around the world believe they may have found the bottom near 6000. When and at what price you buy is always personal, but as of right now, I would be comfortable investing at roughly 6000 if a pullback occurs.

Since the weekly and daily are both bullish showing deadly accurate green light signals to buy on the 16th. Positioning for some bullish gains would have been wise. However, you must recognize that that opportunity appears because we are still under the control of a multimonth bear market. Simply put, if the market does turn back down to the 6000 level, it would be smart to pick up BTC at that 6K level since it is bouncing off of it as support with a green light.

Your analysis should always include a top-down approach that reviews the overall Monthly trend, followed by the intermediate trend (weekly), then the Daily for an accurate picture of the market.

I got lucky and used this approach to buy BTC on the last day of June.  Did you use the charts properly?  If not, now you know how to apply them.

Thou Shall Not Covet Your Neighbors 401K

Thou Shall Not Covet Your Neighbors 401K

I was going to show you some trading charts today, but I decided to have some fun and just tempt you to break a commandment,  the 10th commandment to be specific.

Here is the biblical Tenth Commandment:

“You shall not covet your neighbor’s house; you shall not covet your neighbor’s wife, or his male servant, or his female servant, or his ox, or his donkey, or anything that is your neighbor’s.” Exodus 20:17

But “What about your neighbor’s income or wealth?” Nope, that’s not allowed either.

Remember, in investing it is not about what they own, just what you own. In fact, jealous motivation and greed can affect your investment decisions causing you great pain.

We do not recommend breaking any of the commandments. However, there is nothing against knowing how your income and wealth rank relative to 7.5 billion others worldwide. After all, that’s not coveting . . . it’s just comparing, right?

So, don’t be insecure or afraid, and in less than a minute you will know the stone cold truth.

Compare your Income Here or your Wealth Here.

Then when your neighbor drives up in his shiny new car, you can feel more confident, look them square in the eye and say. “Nice car, do you know I am one of the richest people on earth!

Have fun.

Canadian Stock Market Profits, eh?

Canadian Stock Market Profits, eh?

Both my mother and father were Italian Immigrants in the 1950’s. Part of my mother’s family settled in Canada.

I promised my Canadian family in Toronto that I would write a post specifically for them, so here it is.

The Canadian Charts, specifically the Toronto Stock Exchange represents the performance of the Canadian stock market overall. And like the S&P500, it can help both gage and guide both long-term investors and traders around the world. So, let’s take a look at how we do this for the TSX.

First, I want to clarify that you should not trade based on this post.  Second, it’s important to note that both traders and long-term investors should be aligned with the direction of the broad market trend.

Monthly

We do not want to fight the primary broad wave of the market. The monthly level of a market is where the long-term trend is defined. The monthly level distinguishes the dividing line between what we would call a bull or bear market. Swings from bullish to bearish are far less common and usually sustain for a minimum of 3 months. They commonly can last much longer.

So, we start by looking at a Monthly chart first fo find the markets actual Long term direction. As you can see below, the Monthly chart went bullish in April/May (Green Light) and remains Bullish.

Weekly

The Weekly level of a market is where most portfolio analysis begins. Large investment portfolios cannot move big positions back and forth for a minor reaction over the course of a few days. For this reason, the daily trend can become bullish or bearish while the weekly trend could remain the opposite. Differences simply suggest that a change in the longer-term trend has not been confirmed. Matching conditions on the daily and weekly level is not a confirmation of a change in long-term Monthly trend.

Now let’s turn to the Weekly chart and take a quick peek:

As you can clearly see, our Canadian Weekly chart also performing very well and turned bullish the first week of May and supports the larger bullish Monthly direction.

Daily

The Daily trend of any market may swing from bullish to bearish and back again as many as 50 times during the course of a trading year depending on the market. Any market naturally moves up and down regardless of the markets broader cyclical trend. Nothing moves straight up or down forever without making reactions along the way. Therefore, this chart is great for those interested in extremely short-term trading patterns, higher volatility, and risk.

So, as you can see in the Daily chart, the (Red Light) is stating that there may be a reactive short-term decline ensuing. How long could it last, no one knows, but it is warning of a short-term loss of market momentum.

So, based on seeing the Monthly, Weekly, and Daily charts on the Canadian TSE, what action would you take?

  1. Would you short the investment based on the Daily signal?
  2. Would you sell your investment and go to cash based on the Daily signal?
  3. Would you ignore the red light and stay invested because both the weekly and monthly are still bullish?
  4. Would you ignore the red light and stay invested because both the weekly and monthly are still bullish. And then watch the action over the next several days and buy more at a lower price?

There really is no right or wrong answer because no one can see the future of the market.

So, send us your opinion.

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