Where to Look for Buying Opportunities if a Big Drop Occurs Daryl Montgomery June 29, 2011 Copyright...

Where to Look for Buying Opportunities if a Big Drop Occurs

Daryl MontgomeryJune 29, 2011

Copyright 2011, All Rights Reserved

The contents of this presentation are not intended as a recommendation to buy or sell any security.

Background Material for Charts

• Moving Averages – 50-day, 200-day• Bollinger Bands – plus or minus 2 standard

deviations from a ~20-unit moving average. • RSI – relative strength index, 80-overbought, 20

oversold, 50 divides bearish and bullish• MACD – moving average convergence

divergence, zero divide bullish bearish, peak and bottom numbers variable

• DMI – Directional Movement Index, +DI (blue), -DI (red) and trend line (black).

What to Buy in a Big Drop• In general, whatever goes down the most or is most

off of its previous high. • Things which have been depressed for a while:

natural gas, interest rates, solar, uranium, and silver. • If oil has a drop to around $80, grab it. • Consider gold miners, particularly junior miners. • Look at lithium, rare earth metals and base metals.• Emerging market ETFs including small countries. • On any drop, you can always buy the Swiss franc,

Australian and New Zealand dollars, and gold.

State of the Market

Volatility Index VIX: Three-Years Weekly

10, 40-Week Moving Averages and RSI, DMI, MACD

Volatility Index VIX: One-Year Daily

50, 200-Day Moving Averages, RSI, DMI, MACD

DJIA Three-Years Weekly

10, 40-Week Moving Averages and RSI, DMI, MACD

DJIA One-Year Daily

50, 200-Day Moving Averages and RSI, DMI, MACD

DJIA Three-Years Weekly with Volume

S&P 500 Three-Years Weekly

10, 40-Week Moving Average and RSI, DMI, MACD

S&P 500 One-Year Daily

50, 200-Day Moving Average and RSI, DMI, MACD

Nasdaq Three-Years Weekly

10, 40-Week Moving Averages, RSI, DMI, MACD

Nasdaq One-Year Daily

50, 200-Day Moving Averages, RSI, DMI, MACD

Russell 2000 Three-Years Weekly

10, 40-Week Moving Averages and RSI, DMI, MACD

Russell 2000 One-Year Daily

50, 200-Day Moving Averages and RSI, DMI, MACD

DXY Dollar Index: Three-Years Weekly

10, 40-Week Moving Averages, RSI, DMI, MACD

DXY Dollar Index: One-Year Daily

50, 200-Day Moving Averages, RSI, DMI, MACD

Things that Have Been Going Down for a While

Natural Gas ETF GAZ Three-Years Weekly

10, 40-Week Moving Averages, RSI, DMI, MACD

Natural Gas ETF GAZ One-Year Daily

50, 200-Day Moving Averages, RSI, MACD, DMI

Solar ETF KWT Three-Years Weekly

10, 40-Week Moving Averages, RSI, DMI, MACD

Solar ETF KWT One-Year Daily

50, 200-Day Moving Averages, RSI, MACD, DMI

Uranium Miner DNN Three-Years Weekly

10, 40-Week Moving Averages, RSI, DMI, MACD

Uranium Miner DNN One-Year Daily

50, 200-Day Moving Averages, RSI, MACD, DMI

10-Year Bond Interest Rate Three-Years Weekly

10, 40-Week Moving Averages, RSI, DMI, MACD

10-Year Bond Interest Rate One-Year Daily

50, 200-Day Moving Averages, RSI, DMI, MACD

30-Year Bond Interest Rate Three-Years Weekly

10, 40-Week Moving Averages, RSI, DMI, MACD

30-Year Bond Interest Rate One-Year Daily

50, 200-Day Moving Averages, RSI, DMI, MACD

Silver ETF SLV Three-Year Weekly

10, 40-Week Moving Averages, RSI, DMI, MACD

Silver ETF SLV One-Year Daily

50, 200-Day Moving Averages, RSI, MACD, DMI

Oil ETF DBO Three-Years Weekly

10, 40-Week moving average, RSI, DMI, MACD

Oil ETF DBO One-Year Daily

50, 200-day moving average, RSI, DMI, MACD

Oil 200% ETF UCO Three-Years Weekly

10, 40-Week moving average, RSI, DMI, MACD

Oil 200% ETF UCO One-Year Daily

50, 200-day moving average, RSI, DMI, MACD

Uranium ETF URA One-Year Daily

50, 200-day moving average, RSI, DMI, MACD

Gold Miners and Metals

Gold ETF GLD Three-Years Weekly

10-40 Week Moving Averages and RSI, DMI, MACD

Gold ETF GLD One-Year Daily

50, 200-Day Moving Averages, RSI, DMI, MACD

Mining ETF GDX Three-Years Weekly

10, 40-Week Moving Averages and RSI, DMI, MACD

Mining ETF GDX One-Year Daily

50, 200-Day Moving Averages, RSI, DMI, MACD

Mining ETF GDXJ One-Year Daily

50-Day Moving Average, RSI, DMI, MACD

Gold Mining 200% ETF NUGT One-Year Daily

50-Day Moving Average, RSI, DMI, MACD

Nova Gold (NG) Five-Years Weekly

10, 40-Week Moving Averages and RSI, DMI, MACD

Nova Gold (NG) One-Year Daily

50, 200-Day Moving Averages, RSI, DMI, MACD

Copper ETF JJC Three-Years Weekly

10, 40-Week moving average, RSI, DMI, MACD

Copper ETF JJC One-Year Daily

50, 200-day moving average, RSI, DMI, MACD

Nickel ETF JJN Three-Years Weekly

10, 40-Week moving average, RSI, DMI, MACD

Nickel ETF JJN One-Year Daily

50, 200-day moving average, RSI, DMI, MACD

Tin ETF JJT Three-Years Weekly

10, 40-Week moving average, RSI, DMI, MACD

Tin ETF JJT One-Year Daily

50, 200-day moving average, RSI, DMI, MACD

Lithium ETF LIT One-Year Daily

50, 200-day moving average, RSI, DMI, MACD

Rare Earth ETF REMX One-Year Daily

50, 200-day moving average, RSI, DMI, MACD

Emerging Markets

EMERGING MARKET ETF EEM Three-Years Weekly

10, 40-Week Moving Averages and RSI, DMI, MACD

EMERGING MARKET ETF EEM One-Year Daily

50, 200-Day Moving Averages and RSI, DMI, MACD

BRAZIL ETF EWZ Three-Years Weekly

10, 40-Week Moving Averages and RSI, DMI, MACD

BRAZIL ETF EWZ One-Year Daily

50, 200-Day Moving Averages and RSI, DMI, MACD

INDIA ETF IFN Three-Years Weekly

10, 40-Week Moving Averages and RSI, DMI, MACD

INDIA ETF IFN One-Year Daily

50, 200-Day Moving Averages and RSI, DMI, MACD

CHINA ETF FXI Three-Years Weekly

10, 40-Week Moving Averages and RSI, DMI, MACD

CHINA ETF FXI One-Year Daily

50, 200-Day Moving Averages and RSI, DMI, MACD

RUSSIA ETF RSX Three-Years Weekly

10, 40-Week Moving Averages and RSI, DMI, MACD

RUSSIA ETF RSX One-Year Daily

50, 200-Day Moving Averages and RSI, DMI, MACD