Update Sept 22, 2014 Monday Premarket
We have been warning about the decline in the stock markets around the world yet investors have been fooled by Central bankers that the stock market rally will continue for ever. The ultimate folly is the issuance of record IPO ( $25 Billion) of Ali Baba - an Internet e-commerce web site in China. The stupidity of the whole thing is that investors got shares of a Ali Baba holding company based in Cayman Islands. This is because all the profits of the company are derived from China which is famous for lack of transparency and we cannot trust anything coming out of China but Ali Baba may be different.
More than 115 million shares of the company can be sold in the aftermarket immediately.( It is not customary) So please be careful. We cannot make predictions about how high or how low the stock will go. This is why we never recommend individual stocks and indices which can be easily manipulated. We have nothing but best wishes for Jack Ma who has created more jobs in China than US Federal Reserve by printing nearly 4 Trillion dollars worth of dollars and taking US debt to record levels. Eventually we will all pay for it.
DJI, SPX, DJT, NDX all made new highs on Friday Sept 19 , 2014 but closed near the lows. Advance Decline ratio was also negative on Friday. As we have noted in our book that one need to manipulate a few stocks only to create new highs. It did not happen in NYA or Russell 2000 or IWM. In fact all 3 of these indices closed near their lows confirming our SELL signals. So we will have the biggest decline in these indices as well as in TNA.
European Indices have been having some kind of counter trend rally but because of the fact that Euro has been so weak and US dollar has been so strong, in terms of dollars, the rallies haven been weak. ( Just look at US based ETFs from European countries)
DJI
SPY
NYA
The NYSE Composite is a stock market index covering all common stock listed on the New York Stock Exchange, including American depositary receipts, real estate investment trusts,tracking stocks, and foreign listings. It did not make a new high On Friday Sept 19 and closed near lows confirming a SELL signal based on Technical Analysis ( See MACD)
IWM Russell 2000 ETF As predicted will go below Aug lows and even below May lows
TNA Will go below May Lows Best Short candidate
TZA Gave a Buy signal on Sept 9
GLD Will make new lows . Gave a SELL signal in AUG. See MACD.
NUGT Will keep on going lower but it is Oversold and short term rally can occur anytime
DUST Will keep on going higher but it is overbought and can go down on a short term basis.
TLT Long Term Interest rates Bond ETF
Short term basis going higher
TMV Ready to go lower 3 X BEAR for Long Term Interest rates Bonds
TMF 3 X Bull for Interest rates Bonds . Going Higher. Soon the long term interest rates will rise and TMF will go down. On a short term basis rates will go down. That is why TMF is rising.
NAtural Gas ETF is ready to go up and 3X bull on natural gas UGAZ is a buy
SPY
QQQ
TQQQ 3X Bull
IWM NO Buy Signal Yet
TNA
TZA
GLD
GDX
NUGT
UNG Natural Gas Fund
UGAZ 3 X Bull on Natural Gas Keeps on Going Higher
DGAZ
TLT Long Term Bonds
TMV Long Term Bond 3X Bear
TMF Long Term 3 X Bull
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