Follow Price. Turn Off The TV
Price sound
July 12, 2020
The stock market and the economy are not correlated.
What does this mean for the days, weeks, and months ahead?
No one knows. Especially the TV talking heads.
But you can do this
Follow price.
Know your timeframe.
Turn off the TV.
I recently began an Introduction to Trading and Investing Workshop that will provide you with the tools and confidence to take control of your investments.
I believe that this workshop will be of great benefit to both new traders and veteran investors. You can sign up on my website with this link: Trading and Investing Workshop.
Our free Telegram channel, Klarenbach Research, is growing in numbers, and the members are getting more comfortable with asking questions regarding traditional markets and Bitcoin.
The Telegram Channel is where we post the majority of the ideas.
Talk to someone who is in the Channel and ask them how the results have been.
Here is the link https://t.me/klarenbachresearch.
I hope you check it out.
We have had good luck with our Trade Ideas and the ideas posted on our Telegram channel.
I have included the Trade Results Summary.
The number of trades is becoming too lengthy for this publication.
As you can see, finding Investor Class Ideas has proven difficult.
We had had more success with Swing Trade Ideas and the Telegram channel.
The expectancy of the Telegram Channels is 3.71% for a 9-day hold.
Extrapolated out to a 30 day month, and the result is 12.4%.
Let's see if we can improve on that.
MARKET REVIEW
**Click on any chart to enlarge**
S&P 500 Index (SPX)
Price advanced this past week, and this market is very close to making me a bull.
I haven't waved the white flag to the bulls yet; however, I did locate it and have dusted it off.
At this time, I still consider the B Wave from my March 26 tweet near completion and am waiting for confirmation of the C wave formation.
NASDAQ 100 INDEX (NDX)
NDX made new highs last week.
Dow Jones Industrial Average (DJIA)
The DJIA could not get back above the 200 DMA and looks like it will break down further.
Price is below the 200 DMA, which is considered bearish.
I remain bearish.
ISHARES TRUST RUSSELL 2000 ETF (IWM)
The Russell 2000 is below the 200 DMA and fell out of the Channel testing the 50 DMA. Price is bearish from a 200 DMA perspective and will get bearish if the price breaks below the 50 DMA.
TSX Composite Index (TSX)
Price is still between the declining 200 DMA and the advancing 50 DMA.
Price needs to hold the 50 DMA, or it gets a lot more bearish quickly.
S&P 500 Volatility Index (VIX)
The VIX is below the declining 50 DMA and is testing the 200 DMA.
West Texas Oil (WTIC)
WTI is consolidating above the YTD VWAP and is quite extended. I expect a pullback this week.
GOLD Spot (XAUUSD)
Gold broke out, what was resistance became support, and up it goes.
US Dollar / Canadian Dollar (USDCAD)
USDCAD is consolidating above the 200 DMA.
US Dollar Currency Index (DXY)
The trend is down
BITCOIN (BTC)
BTC has been unable to stay above the trendline, which is also the Hyperwave Phase 7 line.
WHEAT FUTURES (ZW1!)
Price bounced off the confluence of the trendline and the 200-Week MA. This price action is good for farmers.
SOYBEAN FUTURES (ZS1!)
Price broke out of the wedge as anticipated and is poised to move higher. Price also above the confluence of the 30-, 40- and 50- Week MA.
TLT vs SPY
(ISHARES 20+ YEAR TREASURY BOND ETF vs SPDR S&P 500 ETF TRUST
Price is above the advancing 200 DMA and below the declining 50 DMA.
You won't find this in any TA books; however, this consolidation is a sideways f*&$%^ery.
FACEBOOK (FB: NASDAQ)
FB recovered nicely from two Friday's ago.
AMAZON (AMZN: NASDAQ)
Some people regard Bezos as the greatest CEO ever. It might have something to do with this chart.
APPLE (AAPL: NASDAQ)
Newton did not have an iPhone fall on to his head.
NETFLIX (NFLX: NASDAQ)
Netflix and chill.
It is not just the cool kids who are doing it.
ALPHABET (GOOG: NASDAQ)
Testing previous resistance
INVESTOR CLASS IDEAS
The Investor Class opportunities remain pretty thin as I don't have many meeting my Investor Class Criteria for this week.
I will post in the Telegram Channel as Trade Ideas develop during the week.
Here is the link: https://t.me/klarenbachresearch
REMEMBER, CASH IS A POSITION
Don't FOMO into a position. Have a plan.
YAMANA GOLD (AUY: NYSE)
AUY is up 3% to date.
From two weeks ago:
AUY looks like it is breaking out above this bullish flag pattern and is above the advancing moving averages.
I am interested in an Investor Class or Position trade above Friday’s high of 5.34 with a stop below 4.66.
VANECK VECTORS JUNIOR GOLD MINERS RTF (GDXJ: NYSE)
GDXJ up 11.5% to date.
From two weeks ago:
GDXJ is above the advancing Moving Averages and looks like it is breaking out of the bullish pennant.
I am interested above Friday’s high of 47.54 with a stop below 41.93.
SWITCH INC (SWCH: NASDAQ)
I like this consolidation near all-time highs above the Advancing MAs.
I am a buyer above 19.00, with an initial stop below 16.78.
SLACK (WORK: NASDAQ)
We swing-traded this in the Telegram Channel a few times for gains of 5.8% and 24.03% exiting the last time at 39.85.
I like this consolidation on the pullback above previous resistance.
I am a buyer here above 34.26, with an initial stop below 29.54.
SWING TRADE IDEAS
The market feels toppy to me, and after last week's experiences, I am giving the market time to indicate it's direction.
New swing trade ideas get posted on the Klarenbach Research Telegram Channel.
We have been active in the Telegram Channel, and the results have been impressive.
Here is the link: https://t.me/klarenbachresearch
That is all for now!
Drop me a line with any questions or comments. You can do that here.
I am actively posting charts and ideas on social media.
You can find me here:
Klarenbach Research Web site: klarenbach.ca
Telegram: Klarenbach Research
Twitter: @trentklarenbach
StockTwits: trentklarenbach
Tradingview: trent.klarenbach
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