Make Money In Up & Down Markets

Friday, September 26, 2014

Update Premarket Friday Sept 26, 2014

As predicted on Wednesday Sept 24 Premarket , a sharp rally on Wednesday was followed by start of ferocious decline yesterday. Any rally today will be followed by continuation of the decline. The maximum percentage decline occurred yesterday in QQQ and Nasdaq and Spy followed by Russell 2000, IWM and TNA.

Gold and Silver are consolidating because of extreme bearish sentiment. Any rallies now will also be followed by further declines. We have also reached an extreme bullish sentiment in Dollar Index. A reverse can occur anytime. Dollar has been strong against Euro and Japanese Yen. This will also reverse soon . Long term bonds continue to go higher as people get out of stocks and are getting into bonds. Bonds can go to recent highs.

DJI

SPY

QQQ TQQQ the 3X ETF had the biggest decline yesterday and SQQQ 3X inverse had the largest gain yesterday.

NASDAQ

IWM Went below August lows . Will now go below May lows

TNA Will go below May Lows

TZA

GLD No buy signal yet

GDX

NUGT

DUST

TLT Long Term Bonds going Higher

TMV 3X Bear going lower

TMF 3X Bull Going Higher

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Wednesday, September 24, 2014

Sept 24 Wednesday Premarket
DJI, SPX, SPY QQQ all have completed the first leg down as of end of the day yesterday. The first leg had 5 steps as shown in the picture below for SPY. This will now be followed by Leg two up and then the more ferocious Leg 3 down.So please get ready for the bigger decline. Russell 2000 will have only a minor rally and more decline afterwards.

Gold is having a short term rally to relieve the oversold condition.Silver made a 4 year low yesterday and Gold will also make a a 4 year low soon.

DJI Ready for a rally

SPY 10 Day spy chart showing the completion of the First Leg Down

SPY 3 Month Chart ready for a small rally

IWM a weak rally is coming

TNA

TZA

GLD Gold will definitely go below $1185 which was last year's low.

GDX Will also go lower to new 4 year lows

NUGT Going much lower than the 4 year low established last year

DUST Going Much higher soon

TLT Interest Rate ETF Can go to recent highs established in late August

Three Year Weekly Chart of TLT The interest rates were at the lowest point in August 2012 and bonds were at the TOP. Since that time they went up till Jan 2014 and started going down till end of August and then rose. Recently they started going down again. They may go up to Late August lows before starting a big increase. At that time we will buy 3X Bear TMV for big gains.

TMF Going Up short term

TMV 3 X Bond Bear going down short term

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Monday, September 22, 2014

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

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Thursday, September 18, 2014

Sept 18, 2014 Thursday Premarket

Even though DJI made a new high yesterday based upon Federal Reserve Announcement to keep interest rates unchanged for a " considerable time", most stocks did not make new highs.Interest rates rose for 5 year and 2 year notes. They are going up again. We predict that Fedearal Reserve will increase rates before March 2015. Markets also sold off after making new highs in DJI and DJT. Today markets will go up at the start but may or may not go above yesterday's highs.

SPX, Russell 2000 and New york Composite index , NASDAQ , Utilities index and QQQ , IWM, TNA etc did not not make a new high and closed near the lows yesterday. It is interesting to look at NYA which is the New York Stock Composite.

NYA Did not make a new high

Who are the buyers of the stocks near highs? It is the Companies who are manipulating their stocks by buying their own stocks even by using borrowed money. Please see below. This is just financial manipulation by insiders so that they can make more money by upward movement of their stocks.