Market Insights 2023: 28.12% Gain, 7 SPX Wins
Tim Ord | Feb 13, 2024 02:35PM ET
SPX Monitoring purposes; Long SPX on 1/18/24 at 4780.94.
Our Gain 1/1/23 to 12/31/23 SPX= 28.12%; SPX gain 23.38%
Monitoring purposes GOLD: Long GDX (NYSE:GDX) on 10/9/20 at 40.78.
We made 8 S&P 500 trades with one loss and 7 wins in 2023. The second window up from the bottom is the VIX and next higher window is the SPDR® S&P 500 (NYSE:SPY). When the SPX is rallying and the VIX is rallying a bearish divergence is present. We thought at one point the “Selling Climax” low of January 31 near 482 SPY could be tested (which is about 4% lower than current levels), well that door is back open. The bigger trend is up but the short term trend is starting to show divergences. Staying long the SPX for now.
The second window down from the top is the SPX/TLT ratio and the top window is the RSI for this ratio. This indicator works well for the short term. When the RSI of this ratio falls below 30 (circled in red) the market is usually near a low and when the RSI rises near 75 (current reading is 68) the SPY is near a short term high (noted with blue circles). Though the RSI hasn’t quite reached 75, it is near bearish levels and goes along with the bearish rising VIX.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.