ShepWave Updates for Monday. New Highs! But notice the divergence in the Dow Transportation index.
by ShepWave.com
Posted: 7/28/2017 22:54 EST

The Second of three updates for Monday has been published.

Notice how the recent patterns have been working out nicely: the equity indexes are going as anticipated and in fact the divergence now seen between the Dow Industrials and Dow Transportation indexes should be coming into play in the upcoming weeks.

As well Gold has been a no-brainer of sorts. Our aggressive BUY SIGNAL on Gold on July 11th has played out well. Watch the technicals on this one--a sudden change could be coming.

Still, Stay Objective.

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We will likely see some new short term triggers hit again this next week.

It is important to note the divergence between some of the major U.S. equity indexes. (Namely between the Dow Industrials and Dow Transportations indexes. This will have implications shortly.)

The short term signals have been working out well: the bounce we saw from the wedge patterns a couple of weeks ago has indeed played out nicely giving some more short term profits on the long side. Is it time to flip?

Pay close attention to the analysis and triggers is ALL of the charts in this update.

Nice moves in GOLD recently: note the aggressive BUY SIGNAL given on July 11th has worked out flawlessly. So, now what? First of all, use stops that guarantee that you lock in profits. I do not mean to put an actual stop in place electronically--that would enable a bad tick to get you stopped out--but to pay attention to the action and have a key stop/loss area in mind as to when to pull-the-trigger.

The major U.S. equity indexes keep hitting new highs. Remember: especially regarding mid to longer term trading positions or investments--we have not seen a SELL SIGNAL at all--not even close. We can twist and turn the so-called economical environment statistics and see good reason for a bearish turn--BUT UNTIL WE SEE THE SELL SIGNALS---- WE DO NOT HAVE SELL SIGNALS! Inexperienced traders/investors tend to make this much more difficult than it is.

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