Weekly Watch list July 27th – July 31st, 2020

The NASDAQ formed a bearish Doji sandwich and closed below the T-line, this past week. Although the Dow did not create a sell signal, it also close below the T-line. This produces high probabilities that the market could be selling off, possibly moving back down toward the 50 day moving average. There are strong sectors identified, the restaurants and the homebuilders are producing strong bullish signals, fry pan bottom breakouts. Gold stocks continue their uptrends with a very simple trading analysis, stay long as long as the prices do not close below the T-line. These are market conditions that warrant having both long and short positions in the portfolio.