Market Overview
As the S&P 500 tests its record high from last year, the Short-term-composite has already started to unwind, a potential bearish divergence. Alternatively, the unwinding could be bullish, preparing the chart for the next market leg higher, to new record highs.
This Week's Trades
Note - Trades will be executed on today's close.
Analysis
US Equity Indices
The P&F chart for the S&P 500 shows the present test underway of the medium-term range, its ceiling being the record high.
US Sector Indices
The DJ Transports Average has encountered resistance from December 2018. The 14-day RSI shows a bearish divergence, suggesting a short-term consolidation at least.
Other Developed Indices
The Spain Index ETF is attempting to find support from its rising 50-day exponential moving average. The 14-day RSI is at neutral, attempting to turn up. A drop under $28 would end the 2019 uptrend.
Currencies
The British Pound Sterling Trust has pulled back over the past two months. Support is nearing from $124, with momentum nearing its range bottom.
Commodities
The United States Oil fund is lower by 3.4% today, resulting in a test of uptrend support. Momentum is unwinding from overbought.
Bonds
The National Municipal Bond Fund is nearing new 52-week price highs. The 14-day RSI is not overbought, offering room to climb.
Model Portfolio Notes
Opening of positions – Positions are opened on the immediate closing price following the report.
Stops - Two flash crashes (2010, 2015) and occasional bad prices have forced us to drop strict stops. Positons will no longer be stopped out but we shall suggest a region as to where we MAY exit.
Closures - With positions not being stopped out, we shall only exit positions via advice in the report. When we exit a trade, the next closing price is used.
Allocation – Each trade is allocated 5% of the portfolio.
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