We will be adding TWM* shares to an existing TWM position.
July 13, TWM successfully tested a break above its 50-day moving average from last week Wednesday. The price is now above Short-term and Intermediate moving averages. It is still early in emerging from a Stage 1 basing chart pattern. A market close above last Wednesday daily high will be a further confirmation of a change in trend from basing to rising. That price from last Wednesday to beat is $14.65.
The two additional signals we look to for confirmation signals to the price crossing moving averages are MACD and CMF.
MACD is now on a buy with its trigger-line above its moving average.
CMF is also on a buy signal with Chaikin Money Flow – 9 above its 30-day moving average.
Joe Granville, from the late 1970’s had an adage that the stock market drains out value like water draining out of a bathtub. You don’t notice the water draining out of the tub when looking at the surface water and by the time you see the vortex around the drain, it’s too late.
- We are feeling the water draining out of the tub at this time in the market.
Less volatile because it is not leveraged 2X is The Dorsey Wright Short ETF (DWSH)* $8.64.
Being Under $10 DWSH, was added to the LOTM: Ten Under $10 list Monday morning.
Though not on a buy signal yet, it seems to be heading in the direction of going on a buy signal.
These are two ideas you might consider as a stock market hedge in the event of a market correction.
Have a great day! Tom
LOTM Research & Consulting Service
Where Value meets Buy Signals!
Feel free to forward or recommend to others.
* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
Please refer to our web site for full disclosure at www.LivingOffTheMarket.com ZTA Capital Group, Inc.
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