Short Sell setup SPY, buying inverse ETFs

We may very well have another Short Sell position. This buying may dry up soon, setting the formation for another sell off. Make sure you stay tuned both by checking the Member’s Signal page and, staying alert to emails from us. You need to be member to be able to have access to our signals as well as the on …

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Here is table of the historical trades for last 5 round trip trades this year with the most recent ones in bold font: Symbol Position Signal Date Initial Stop Price Final Stop Price Entry Date Entry Price Exit/Stop Date Exit/Stop Price Gain/Loss $ Gain/Loss % SPY SHORT 09/26/2019 $299.74 $288.00 09/27/2019 $297.83 10/03/2019 $287.81 $10.02 3.36% SSO SHORT 09/26/2019 $130.00 …

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The inevitable slump and the excuse for sell-off

Here are the narratives of the reason for the slump today: The ISM’s September survey on manufacturing firms registered at 47.8%, down from 49.1% in July, below the 50.2% predicted by economists, below 50% indicates contraction. This was inevitable and the pro-traders just used the ISM report to sell. As you all know we do not care much for the news. …

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Our Thoughts on Emerging Markets Pricing EEM & EWZ

Emerging-market equities (EEM & EWZ) are often able to achieve dramatic gains even when U.S. equity indices have already begun what will eventually become a bear market, much like in 2007-2008, emerging market equities still usually decline on days when U.S. equities experience significant losses but not to the same degree. However, when they rebound it is much stronger than …

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IWM is underperforming SPY

The repeated underperformance of small-cap equities versus their large-cap counterparts is alarming. The Russell 2000 has been dramatically underperforming, as IWM (the ETF which replicates Russell 2000) has not been able to reclaim the net new high. This new high, at $120.64, was reached just after the March 7, 2014 U.S. employment report in the pre-market session. Since then IWM …

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Emerging Markets, EEM and EWZ

Investors are moving back into emerging-market funds and it is not due to their great research. They are just chasing after recent outperformance and will continue to do so as U.S. equities slowly retreat while BRICs and related assets surge.

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Bad news is always easy to find near the bottom. The Emerging Markets prepare to turn: EEM & EWZ

Nearly all market fluctuations are driven by emotions, not by fundamentals. Therefore one key to long-term success is acting consistently in the reverse direction of the most psychologically extended market moves. In recent days, some emerging-market indices and funds have fell to their lowest points since the summer of 2009. As a result, we are experiencing growing divergences and probable …

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The sharp currency decline in the emerging markets is a good thing

Currently many established emerging markets (EEM, EWZ, RSX) have been trading near four-year lows, thereby causing them to exhibit classic fundamental signs of undervaluation. They also have experienced sharp currency declines, making their local wages much lower when measured in U.S. dollar terms. This last happened in the first quarter of 2009 and greatly improved the profit margins for such …

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Irrational disparities of Emerging Markets (EEM) relative to the S&P 500 (SPY)

Emerging markets (EEM), particularly countries such as Russia (RSX) and Brazil (EWZ), have been trading near four-year lows, causing them to display classic fundamental signs of undervaluation. Michel Gayed has recently written a very intelligent article about the historical disparity of SPY and EEM: 1998, where are you? Generally, the greatest and most irrational disparities lead to the most substantial …

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Commodity-based ETFs, such as EWZ, XIU, EWA and RSX, will be in the spotlight

Cyclical securities will capitalize upon their all-time record undervaluation relative to high-yielding assets by staging their strongest rallies during the next half of 2013 and into the early part of 2014.

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