April WhiteWave Update

                                                   Forecast
January saw our models go neutral. We’ve been defensive Equities favoring the Long side of Gold and Treasuries.
Our Risk Models turned up the beginning of April.
They are once again signaling caution.
We expect volatility to remain heightened over the near term.What started as a supply shock is rapidly turning into a demand shock.

Investors and traders will get an opportunity on both the long and the short side of the market, however it could take a significant amount of time to repair the price destruction in the overall indexes.

No system is perfect, but our process is reliable and repeatable with models designed to improve the probability of success. Whether you are a day trader or long term investor, we can help you stay ahead of consensus.

Context

As is typical with market corrections, they seemingly come out of nowhere catching most investors off-guard. This most recent severe correction which began at the end of February 2020 was the mirror image of fourth quarter 2018 correction.  However, clients of WhiteWave were forewarned with enough time to prepare. Why? Because WhiteWave has a reliable and repeatable process developed over a forty year period.

Most recently, our proprietary Risk Models were able to identify the risks forming in January 2018 suggesting a very high probability of an increase in volatility. This gave WhiteWave clients sufficient time to take defensive measures to protect their portfolios depending upon their trading style. Our clientele consists of Retail Investors, RIA’s, and Hedge Funds; each with a different approach. Some trimmed long positions, others bought Put options while others used Inverse ETFs as a hedge. Regardless of their approach they were prepared and profited from our process.

The WhiteWave process employs elements of price, volatility, Matrix Levels, risk spreads, among others, across multiple duration. We measure and record the data for U.S. stocks, Bonds, Currencies, Oil, Gold Commodities, and Foreign Stocks & Bonds.

Our models enable us to distinguish between a market correction vs. a bear market. Throughout 2017 when many continually called for a market top, our models kept long-only and RIA clients invested through January 2018. At which point our models detected rising risks as described above. For active traders our intraday alerts provide trading levels for day-traders and those wishing to trade counter-trend moves.

WhiteWave April Update for Long-Term Investors /RIA’s

We began trading the U.S. Indices from the short side 1/22/20, looking for an intermediate market top.

The first week of April our models confirmed higher.

Our models are once again days from going neutral.

We have a very specific parameter for a model change, making for a volatile opportunistic environment.

Investing is a selective opportunistic trading affair.
Strict risk management is key to our success.

You can access Whitewave’s Youtube channel and listen to Yra discuss
the Global Macro Fundamentals while I present the technical triggers.

The Youtubes are a free PHD in Global Macro Investing!

These are real time conversations where our RIA community has outperformed the industry.

The RIA’s in this room are up money with the rest of the Industry down.

The case for the Gold rally has been a hot topic since last summer.

We’ve been speaking about the risk in the Equity Markets for a few months.

Yra and I set up the scenario and the trigger.
The process is repeatable.

It’s was the same in 2007-08.
It was the same in 2018.
It was the same on 2/20/20.

WhiteWave April Update for Short-Term Investors

Judd’s Room has been actively trading Indices with macro insight from Yra Harris.Our focus remains on buying hard breaks in Gold, Gold & Silver Miners and Bonds.

April had us buying select names in SMH, Cyber Security, Biotech, Energy and Indices.

The rally in Nasd ran into an identifiable wall @ Nasd/Bonds 200 DMA.
We will adjust our strategy accordingly.

Crude was trading @ $17 we said it would trade $2.
Even I was astonished to see it go negative 40 dollars.

After that dislocation we told our clients the last week of April that 10 would hold the next break and attempt 19.36.

That trade unfolded last week with a retest of 10 followed by a rally to 20 dollars.

There is absolutely no reason to be opinionated with one sometimes two big standard deviation moves a day.

We have a price template called the Matrix Sheet. We are simply trading from one level to the next, which can be over 100 points in between levels in the S&P 500.

Room members have been trading the Indices and names from the Long side for the better part of a Month.

The Room is a sum of its parts.

I wish to thank the Room participants for some very profitable trades in Oil tankers, Semi Conductors, Cyber Security and Healthcare.

Homework and preparation is key to successful investing.

WhiteWave utilizes a Technical Template for Long-Term Investing. Boundaries with a high degree of certainty.

This same template is scalable for short-term trading revealing  high probability opportunities multiple times a day.

During this period of heightened volatility that is translating into multiple 50 S&P point swings per day.

 

WhiteWave keeps you executing timely trades from the right side of the market with measured risk parameters.New Feature

Daily Chat Room;

A live forum for Investors and Traders where we discuss current capital flows, instruments by request, and charts.

We feature 1-2 low risk opportunities a day.

Q4 2017-Q1 2018  Chronology of trades
https://www.whitewavetradingstrategies.com/whitewave-april-2018-update-2/

If you’d like to learn more you can click on the research link to our site or just call.

Click on the link to learn more or get back on our mailing list.

www.whitewavetradingstrategies.com

March Fan Mail:

Judd,

Your service and the layers of insight that come from you and the group are truly invaluable. As an advisor with a more long-term focus, at first I had questioned how this information and data would really benefit my practice. It did not take long to see the value. You called the downside/correction in late 2018 perfectly. As a reminder, I started subscribing in September of that year. I did not completely reap the benefits because I was still new and learning, but I quickly became educated to what you were seeing and the why and how you were making your calls. Fast forward a year and the market has been on a tear. I know my old self would be telling clients to be more cautious and sell off more equities, but I haven’t. They have been reaping the benefits and seeing their equity portfolios continue to grow. This doesn’t even speak to the added value of the group in the room. The insights provided there is extraordinary. Thank you!

All the Best,

David L. Zinck

Judd,

Thanks again for your great pick on the Spy Puts
Much better trade for me.
I don’t get caught up and emotional versus shorting.

Easier to tolerate the volatility.
Great of have your expertise.

Regards Merv

Thanks to your Daily Market Intelligence reports I am becoming much better trader. There is no BS there! Just great down to the point analysis. 

Hi Judd,
Thanks for the update.
Please know, I appreciate your spot on reports.

Ed

Thanks Judd
I am hanging on every word you write – great call in yesterday’s DMI on the P&F 50 that showed a short term double top.  This stopped me from going long on a trade on Thursday which dropped.

Regards
Dallas

You’ve been smoking hot!

Eric

Keep your feedback coming.
We are open to comments as we continually strive to make our product better.

All my best,
Judd
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