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