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Market Timing

Wednesday, July 25 2018

In our previous Blog (shown below), we pointed out that this market could be getting way "over-bought", but we pointed out that our economics are very good now and that usually leads to "new highs". Since then, corporate profits have continued to grow (strongly), Trump's tariffs and associated deals seem to be getting acceptance in the EU, etc.  In other words, many important "things" seem to be doing well.  SEE PROOF BELOW.

SPY - Breakout above Resistance

QQQ - New Highs

The danger, of course, is that if any one of the major issues at stake worldwide today (N. Korea, China's retaliating tariffs, Europe rejecting our newest tariffs without a counter-deal, a breakdown in profit growth (especially from hi-flyers, like the FAANNG stocks), could be devestating.

For Example

See the participation of FAANNG stocks in the SP500 Index (Facebook, Apple, Amazon, Netflix, Nivida, Google).
Market statistics show that 122% of the 2nd quarter gains in the S&P 500 Index resulted from the performance of just ten stocks, eight of which are from the technology sectorThe blue column on the right below shows what % of the SP500 gain each individual stock accounted for (e.g., AMZN's growth accounted for 36% of the S&P 500 growth).

So, without any major set-backs from any of the issues above, all US indices should continue to grow with good strength; but even a slight setback could derail this extended bull market

The "derail" part is where MIPS comes in and will tell us if any "upset" that happens is strong enough to change the direction of this extended bull market, or just strong enough to result in another rather small setback.  Stay tuned...

Be careful, and feel free to call anytime between 10am-10pm CDT (six days/week).

Paul Distefano, PhD
CEO / Founder
MIPS Timing Systems, LLC
Houston, TX


<<< Previous MIPS Blog >>>

MIPS Members:

There are a lot of things going on now that could be a "catalyst" for a big market crash or correction (tariffs. Brexit, worldwide geopolitical unrest, 2018 mid-year elections, inflation, overbought stocks, etc.).  On the bullish side, US companies are stiil experiencing growing gains in corporate profits, high employment numbers, etc.).

Overall, however, some very knowledgeable financial experts think that a big market drop is inevitable soon.
- For example, read the following two of very many articles that are being posted at an alarming 
  rate now:

Also, at least look at the following graph. This is why many investors believe that the stock market is grossly "overbought" after its recovery in March, 2009.

We have to at least admit that this is a scary period. 
But, we are not alone.  We have MIPS to tell us what to do, and MIPS reacts well in down markets. 

See the MIPS actual trades and performance in the period of the "2008 Crash" (Dec'07 - Mar'09):

Be careful, and feel free to call anytime between 10am-10pm CDT (six days/week).

Paul Distefano, PhD
CEO / Founder
MIPS Timing Systems, LLC
Houston, TX

Posted by: Dr. G. Paul Distefano AT 07:11 pm   |  Permalink   |  Email

MIPS Timing Systems
P.O. Box 925214
Houston, TX  77292

An affordable and efficient stock market timing tool. Contact MIPS
281-251-MIPS (6477)