Stocks Break Lower

While stocks did form a swing low on Thursday, they were contained by the double resistance of the 10 day MA and the 50 day MA on Friday.

Then stocks broke lower on Monday.

Stocks printed their lowest point on day 44, placing them deep in their timing band for a daily cycle low. We needed to see a close above those two moving averages for confirmation of a new daily cycle. Instead stocks were rejected by the convergence of the 10 day MA and the 50 day MA. And with stocks forming a swing high on Monday that signals a cycle band sell signal. Stocks are in a daily downtrend. They will remain in their daily downtrend until they can close back above the upper daily cycle band.

Buy Signal Strengthens

The FAS Buy/Sell Indicator trades on Direxion Daily Financial Bull 3x ETF (FAS).
This is proprietary system that generates buy or sell signals.
It delivered a buy signal back on 12/24/18. (see the example below)

Crossovers on the TSI generate buy or sell signals.
Crossovers on the Williams % R -80, -50 or the -20 line also generate buy or sell signals.

Generally speaking:

* If the signal is trending higher, it is a sell signal
* If the signal is trending lower, it is a buy signal

The current signal indicates a strengthening of the buy signal.
Based on the current stop this trade is up 18.66%

Below is the track record of this indicator for the past 3 years.

For the 3 month subscription for the FAS Buy/Sell Indicator Trading System, including full access to the Likesmoney Weekend Reports – click here.

For the 6 month subscription for the FAS Buy/Sell Indicator Trading System, including full access to the Likesmoney Weekend Reports- click here.

Included with every subscription is access to the Likesmoney Weekend Report .

The goal of the Weekend Report is to develop an on-going framework of expectations using cycle analysis.

It discusses Dollar, Stocks, Gold, Miners, Oil, & Bonds in terms of daily, weekly and yearly cycles.  And it also includes the Likesmoney Cycle Tracker.

In addition I post what I call my Weekend Updates.

The Weekend Updates cover

  • The DAX
  • GYX
  • NATGAS
  • XLE

 

The entire Weekend Report can be found at Likesmoney Subscription Services

Current subscribers can access the report here.

Deja Vu All Over Again.

Stocks once again delivered a sell signal.

Editor’s note: Tonight’s report will seem very similar to last night’s report.

Tuesday was day 22 for the daily equity cycle. The new high on day 22 assures us of a right translated cycle formation. However Tuesday was the third day in a row with a large Selling on Strength number being printed.

Over 635 million is Selling on Strength printed on Friday. On Monday stocks printed 410 million more Selling on Strength. Stocks then printed an additional 776 million Selling on Strength on Tuesday. The over 1.7 billion in Selling on Strength over the past three days continues to signal that smart money is selling into the break out.