Sunny Side of the Street

Sunday night January 23, 2022

If you signed up for my Free Indicator for TS, or if you registered for the FREE Strategy Trading Forum continuing on Jan 25th, I have taken the liberty of sending you this weekly Free Newsletter: "Sunny Side of the Street." If you don't want to continue receiving it, just unsubscribe and I'll take you off the list. Thank you for your interest.

Link to Sam Tennis' Products below.

PROGRAM EASYLANGUAGE . DEVELOP YOUR OWN STRATEGIES . LEARN HOW TO TEST WITHOUT CURVE-FITTING . BOOST YOUR PROFITS . START TRADING WITH CONFIDENCE . OUTPERFORM . TRADE SMART

STRATEGY TRADING FORUM. We are continuing this week with Session III. Save the dates January 25 and Feb 1 2022! Starts Promptly at 10am PST each Tuesday. Sam Tennis speaks this week near the end of the session. Only 2 sessions left.

All New "Strategy Trading in 4 Parts" by Sunny Harris. The Sessions on Jan 4 ,11 and 18 went very well and were well attended. Next meeting is Tuesday Jan 25 and each Tuesday at 10am PST for 2 more weeks. Thanks! The slides are posted: log in under Membership.

I will send you the Zoom Link to the webinar right after I send this out, if you are registered.

VantagePoint ai Prediction for Tomorrow

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Tonight's VantagePoint Prediction is of the ES. As you can see, their prediction for Monday (+/- 3 days) is for a high of 4,456 and a low of 4,314. More downward action is impending. They have been VERY accurate lately, predicting the current downdraught before it started.

Check my MoneyMentor home page of this website daily to keep up with the daily predictions from VantagePoint. I post them every day.

While this prediction is good for tomorrow, wouldn't you want to know every day of the week? Of course, the best thing is to run VantagePoint every afternoon, not just on Sunday nights, as I do for this newsletter. And you can always look at the home page of MoneyMentor to see the current VP chart.

Last Week I Said

Last Sunday I said the Dow could be going on down to the 38.3% line if it broke the 23.6% Fib line. And that's what it did. Currently it is sitting right on the line at 35,911. With markets closed tomorrow we shall see what happens Tuesday.

Here is an interesting article: "Why Most Traders Lose Money". It's good to know what to look out for. This one from Jeff Swanson.

This week I am keeping track of HUM. It made a dramatic move a week ago and I'm interested in following the aftermath.

SunnyBands Implications

Dow Jones

The Dow, which consists of 30 industrial stocks, not the high tech ones that I like to trade, has set new all-time highs only to retreat from them. Futures on the Dow are up about 30 points tonight. That is encouraging, but then again it is Sunday. We still have to see what Tuesday brings.

Tomorrow is Martin Luther King day, so it's a bank holiday and the market is closed. There are no interesting reports due tomorrow. Tuesday should be telling, giving us an indication of where price is heading. ES Futures just opened today sharply up, maybe because we are off tomorrow, maybe because of bullishness. We shall see on Tuesday.

The Gold DMA is on top of the Purple still, as you can see from the purple and gold dots (Who''s On Top) at the bottom of the chart, speaking to more bullishness, but the DMA_H is showing mixed signals turning red and then gold and red and then gold. It could go either way. Further move down Tuesday could be a sign of more to come while a move up on Tuesday would point to folks buying dips, causing the market to move higher.

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S&P 500 (ES)

The ES was weak this week though up and down the net result was largely sideways. The DMA is flat to pointing downward and the Who's On Top dots are still Gold meaning that the Gold DMA line is on top of the Purple. The DMA_H is showing red, giving a short signal last week. I think we have further to go on the down side, but again, I trade 5-min charts not the daily.

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Since this is a weekly missive, we miss the daily changes to the indicators. Send me an email if you are interested in daily updates. I can have them sent to you directly from my trading platform to your email or your phone. Or better yet, order SunnyBands and DMA_H for your own computer. Of course, like all my products, they work on intraday charts just a well. All symbols, all timeframes.

To get a long-term perspective, let's look at the various positions called for by the consensus of timeframes. Note that the timeframes are colorful! The different time frames are mostly bullish right now, but turning down. Not a promising sign. Remember, I trade a 5-min chart and it has been short this week during the run-downs. Price is currently above the VWAP. That's a bullish sign at the moment.

TimeFrame	Position
Monthly	bullish /\
Weekly	bearish \\
Daily	bearish \\
15-Minute	bearish \\
1-Minute	bearish \\

It really helps to have these indicators for your own, to take your trading to the next level.

Call me (1-760-908-3070) and I'll send you a 7-day FREE trial of these indicators for you to see for yourself. Don't want to call? Just fill out your questions and desires on my Comments form and I'll get right back to you.

Stocks

In this section, I like to take a peek at a few of my favorite stocks. I trade what I know. I use Amazon in real life, so I trade AMZN. I use Verizon as my phone carrier, so I trade VZ. I use Google all the time. I use Microsoft software so I trade MSFT and so on. Let's first look at the RadarScreen view of a few stocks:

The table above is my main research tool. It not only has my DMA_H predictions but also shows my PHW indicator (yellow) at the far right and 3 short-term averages calculated with my DMA smoothing function. I call this one RedLite-GreenLite.

When I sort on PHW from highest to lowest tells me which stocks are the most tradable. A stock that just moves slowly from A to B is an investment, not a tradeable (to me). I'm looking for wide swings from which to profit, not just buy-and-hold. This is how I decide what stocks to buy and which to trade.

This week the stocks are sorted by the DMA Direction (Dirn). On the upper part of the screen you see a grouping of Bearish stocks that are turning up. These are the ones I am watching for entry points. Although lots in the charts portends movement to the downside you can see here that lots can also point to Bullishness.

To me trading is not about being right! There are lots of advisors and stock pickers out there who boast about getting MSFT at $32 and holding it for gazillions in profit. My trading style is to specialize in a few things and be good at them. The stock pickers never tell you how many they picked right, only the few that were the big winners. I specialize in a handful of stocks for the long swings and the EMini futures for intraday trading.

It is the columns just past the middle of the RadarScreen window show a colorful area that tells me at a glance the configuration of my DMA_H on all the stocks in this portfolio. (This indicator is called DMA_R_H, meaning DynamicMovingAverage RadarScreen Histogram.) Green Bearish \/ means the stock has been bearish but is now turning up. Purple \\ means primarily bearish. (These are the colors in the DMA_H and SunnyBands DMA. So, "purple" means Purple is on top in the DMA.) Gold Bullish // means the stock is moving upward. Red Bullish /\ means the stock has been going up but has now turned downward.

Of course, you can sort on any or several of these columns with this indicator. Color coding things makes it easy for me to spot opportunities at a glance. If you would like this indicator for your TS RadarScreen click here.

From this look (above) at the RadarScreen (like a spreadsheet) I can sort by SDMA, which shows me all the bullish stocks on top with Dir showing me which are moving aggressively upward and which have been moving up but have now turned down or the PHW which shows me the most tradable stocks. Call me, I'll explain it. 1-760-908-3070 PST. Or, better yet, email me your TS Customer Nbr and I'll set you up with a FREE 7-day trial.

Click Here to see and listen to the DMA_H Live with BingTicks! ALL NEW: BingTicks has been upgraded to talk! In my voice it tells you your current position in the market, or your strategy's position. It says "Flat," "Long," or "Short" and the number of contracts. I wanted it to help me keep my focus on what my chart/position is doing. It works wonders as an attention focusing device. And, it still bings and bongs with each tick of the market. Get it here: BingTicks.

HUM

Wanna see something exciting? Take a look at this next chart: Humana (HUM)! It dropped 121 points in a huge gap down--from 472 to a low of 351. On news that they were signing fewer Medicaid customers than expected this year. The only reason I looked at this one was that a client called me and said, "What happened to my Humana!" So I took a look. Wow! Nevertheless it put in a strong recovery in the days that followed, finishing the week up 43 points. The last 2 days were full of indecision, as it moved slightly down to sit on the Fib line that supported it. If it moves up Tuesday I'm a buyer.

I'm now watching this one for buying opportunities. BUT, never try to catch a falling knife! Nevertheless, the street wisdom is that Gaps will be Filled. Price on HUM is below the LOB which took a dive right along with it, and even dropped through the Attractor eminating form the lows of Feb 2021.

AMZN, is still the stock with the highest PHW, with Bookings Holdings (BKNG) second, with AMZN under the DMA (with Purple on top) and moving below the Attractor that lies at 3,292.79). The lower edge of the channel lies at 3,186. Price is currently at 3,239. As it approaches the lower edge of the yellow channel I'm a buyer again.

AMZN can't seem to get out of the channel it has been in "forever." The reason it is the most tradable is that it keeps churning back and forth within the channel offering both long and short opportunities. I'm hoping this one is going to se up an up-cycle taking the general market upward.

Price is below the 3 Simple MAVs I watch: 13, 55, and 200. Last week I said: "These suggest that price is going to touch the lower limit of the rectangle at the very least, if not moving on down below that." I would be surprised (and it wouldn't be the first time) if price drops out of the channel. Typically AMZN just goes to the bottom of the channel and back up to the top. Because it is currently at the bottom, I'm ready to buy back in if price moves up, but won't touch it if it drops beneath the channel. The DMA_H is showing green with the Purple DMA line on top. This could be a great place to buy in, but only if confirmed by price.

Cathy Wood's 5-year projection for TSLA (below) is 4,000 at this juncture. She may raise or lower her projection, but this is it currently. And I believe her. It will split again, but the pre-split projection is 4,000.

TSLA has closed up on Friday after a mixed week, to land at 1,049. Still above 1,000 it remains my favorite stock and my largest holding. For me this is a long-term investment. I believe we will continue to turn to carbon-neutral technologies and electric vehicles. I have not yet purchased their vehicle because I'm waiting for better batteries. I would want to get to LA and back on one charge before it is viable technology in my mind. When the batteries are better I expect this stock to really take off.

Eight weeks ago I said I thought ARKK price would tick on down to the LOB and possibly beyond. It has done just that. Price is now below the LOB and even below its lower Attractor at 80.24. It is very difficult to meet expectations after you have the phenomenal year she had last year. I get a list of her trades every day by email. You can too by going to www.ARK-invest.com. I think she over-trades and should consider some longer-term holdings. The Purple DMA line is still on top, telling me she has futher to go on the downside.

I wish her only the best. She's a very smart woman. But, I think she needs SunnyBands, don't you?

MSFT penetrated the DMA and dropped down and shortly through the Attractor at 306 (that I mentioned last week). It bounced up a bit on Friday and is now barely on top of the Attractor. The DMA has Purple on top but the DMA_H is trying to turn green. If the overall market continues to sour, so will MSFT. Inflationary pressures could exacerbate an economic downturn that would affect us all.

Buy the DMA_H and SunnyBands for yourself. They are life savers. I totally rely on them for my own trading. You can have these indicators for yourself. They are a great trading tool! And now I have a new indicator that plots a series of colored dots letting you see at a glance Who's On Top, Purple or Gold. Here's what it looks like. It is the series of Purple and Gold dots at the bottom of the chart.

Send me a note telling me what stock you would like to see analyzed next week. If you are reading this I would like some suggestions! Click here to leave me a Comment.

BitCoin, Etherium, Gold, Bonds

BitCoin

BitCoin is still languishing between the LOB and LIB, though it is moving up somewhat this weekend. The pundits that send me volumes of email are all touting BitCoin (and other coins). If that is any guide price should take off and make new highs in the future. But who knows when? Right now it is sitting on a strong Attractor acting as support and has dropped as low as the 76.4% Fib line. That "should" hold it for the near-term. But again, who knows?

I haven't held any BitCoin. Instead, I have had ETHUSD (Etherium) since its low in May. I'm still holding a nice profit in ETHUSD and intend to hold it for years just to see what happens. Price is currently at 3,333 and is above the LIB and heading for the DMA Midline, which lies at 3,613. Purple is on top but the DMA_H turned bullish on 1/11/22 at 3,232. I'm still holding for much higher prices.

Gold

Gold is still flat now but has risen from last week, now at 1,814. It is sitting in the middle of a Pennant formation showing sideways movement. The DMA Midline is flat, and has been for months. I am giving a talk for TimingResearch on 1/25/22 where the speakers will be presenting their Outlook for 2022. One of the charts I will be analyzing is Gold. Register and Tune In. It should be fun.

Bonds

Bonds are flat on the week but down in this afternoon's trading. In fact, price is touching a strong Attractor at 154-21/32. And about to dip below it. Fed is reducing it's bond buying. Are they also selling? If so, this could put pressure on price as they tighten interest rates and try to head off inflation. True inflation is about 10% but they report the CPI without groceries and gasoline--two of the average human's expenses which have risen dramatically. Even so, the reported 7% is bad enough. Salaries have risen due to the Great Resignation, but not enough to cover this inflationary growth.

DEFINITIONS

Attractor: I coined this term to refer to the market's tendency to revert to the mean. An Attractor can be a line of support or resistance, a moving average, a Fibonacci line or a trendline. The markets tend to return to the Attractors. An Attractor is often a horizontal line or a trendline drawn, not on highs and lows, but at the preponderance of prices. Attractors are drawn around heavy market activity, not on extrema.
DMA: My DynamicMoving Average—calculates its own lengths internally and dynamically. When the DMA Purple line is above the Gold line I say "Purple is on top" and if the Gold line is above the Purple line I say "Gold is on top." Purple on top denotes bearishness while Gold on top denotes bullishness.
DMA_H: DynamicMoving Average Histogram—The difference between the two DMA lines (Gold and Purple) plotted as a histogram.
MidAngle: The angle of the MidLine in degrees. When it's flat I avoid trading, or stay in the previous position.
MidLine: The average of the Gold and Purple lines. You can set SBands to use it if you like it. I keep it on my charts plotted in black.
PHW stands for Potential Hourly Wage. This indicator places dots at ideal turning points on the chart. The RadarScreen version is what I use in the RadarScreen display above to identify the most tradeable stocks.
UIB, UOB, LIB, LOB: referring to SunnyBands: UpperInnerBand, UpperOuterBand, LowerInnerBand, LowerOuterBand respectively.
Who's On Top: purple and gold dots at the bottom of my charts that clearly display whether the Purple DMA or the Gold DMA is on top.

For a FULL Glossary of Trading Terms, click to go to MoneyMentor's Comprehensive Glossary.

MY DIATRIBE FOR THE DAY

IMPORTANT: Nothing in this newsletter is an offer to buy or sell securities of any type, nor is it advice to make any financial decisions. You are in charge of your assets and only you know your risk tolerance and how much you can afford to lose. Never invest/trade with money you cannot afford to lose. This information is intended as educational only. DISCLOSURE.

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I love listening to happy music while I write and program. Here's today's song: Somewhere Over the Rainbow.

Products

All subscribers to my Sunny Side of the Street newsletter, and Members of MoneyMentor, are eligible for a 10% discount on my products. Call if you are interested. (760) 908-3070 PST. I will be raising prices March 1, so if you want any of my indicatorsnow is the time before prices go up.

Consulting/Mentoring - There is nothing that makes me happier than my students turning into great, profitable traders. I love to help new traders, and intermediate traders who are in a slump.

Quips and Quotes

"Thanks very much; I do like hearing from you [, Sunny]. Thanks to SunnyBands I now have a net worth above $1.25 Million." -Don T.
[Editor's note: Don started 3 years ago with a $25,000 account. And, he told me yesterday that his account is now well over $2 Million.]

"This is a very powerful tool! It's better that what I've had. I'm going to scrap my old tools. It's speaking to me. I kicked butt today making $1,500 trading crude, gold and the S&P." (re SunnyBands) -Tony C.

"I want to thank you for your books. I have read them all and it has been what has inspired me to have confidence in what I have been trading. This month alone I'm currently up $80k." -Tim A.

"Impressive Resume! Wow. You have forgotten more than most of us will likely learn. :)" - Kevin S.

"U r still a genius!!! Not a single losing trade all week!!!" - Chip S.

Consulting Packages

Sunny has been teaching others to trade almost as long as she has been trading. Helping struggling novices over the hurdles is a passion of hers. Sunny has won awards for her teaching and consulting, being #1 in several categories. Sunny can teach you how to use TradeStation & MultiCharts and EasyLanguage and PowerLanguage, TC2000, VantagePoint, NinjaTrader, Genesis Navigator, and MetaStock so you don’t spend months struggling on your own. If you have a concept you want programmed, she can do it for you or teach you how to do it yourself. Click Here.

Strategies, Indicators & Custom Programming

We provide a wide range of software programmed by Sunny for her own trading. We are not a churn and burn shop that puts out lots of indicators for sale, just to have products to sell.

Each of these unique products is available to help others in their quest for profits. And, they are used by Sunny in her own daily trading. The software includes indicators that make trading smooth and easy, and strategies that can even be automated to provide hands-off trading. Click here for a full list, descriptions, charts and prices.