May 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 back up the beginning of April.

There is a glaring divergence between the winners and losers in this rally.

The gap in rationale for owning specific sectors and names reflects the disparity between brick and mortar vs. digital.

Lumping the entire market into group thought will be damaging to your bottom line.

We expect volatility to remain heightened over the near term.

Investors and traders will get an opportunity on both the long and the short side of the market. Investor sentiment is currently at record bearish levels.

We’re alert for this to be tinder for a near term melt-up going into Month end.

Our models keep us directionally right. Our targeting work tells us where markets want to go.

These same models give us the vision to see where the bumps in the road can materialize.

The bumps are specific price targets that are matched up with our Risk spreads.

In short, we know where to add and subtract risk with a high degree of certainty.

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 May Update for Long-Term Investors /RIA’s

The first week of April our models confirmed higher.

Per our last report, Our models had a small window to go neutral. The models remained up.

We have a very specific set of parameters for a model change. We expect volatility to remain heightened.

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

Big Cap Tech names, with the Swiss National Bank buying tailwind, have been the easiest prey to hunt.

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 or just getting back to where they were
before the Covid led decline began.

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 May 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.

May saw the Room add specific names in gaming like ERI and renewed buying in FDN.

Yra liked RSX, the high yielding Russia ETF. It matched up well with the May Oil delivery inversion. Most of the RIA’s in the Room added that name back into their portfolios, now with sizable gains.

The options group within the room targeted AAPL, MSFT FB & NFLX as the easiest trades to reestablish longs on down days.

They’ve stayed with the usual suspects. SHOP, AMZN, GOOGL, NVDA.

The April rally in Nasdaq ran into an identifiable wall @ Nasd/Bonds 200 DMA.

Judd’s Room members traded the 560 point break and used the opportunity to reload on long exposure.

Nasd/Bond is trading well above its 200 DMA.

April 13 saw the Nasd 100 trade back above its 200 DMA.
Once above, Nasdaq 100 never backed off.

Now the S&P 500 is retesting its 200 DMA.

Russell & MIdcap names are being bottom fished for a retest of their respective averages.

Crude Oil Low was identified. We recommended buying a retest @ $10 using our proprietary models.

A video explaining our methodology will be published By Financial Repression Authorities Richard Bonughli.

Richard has access to the finest Global Macro thinkers in the world. The interviews are free and I consider them mandatory listening.

I’m humbled that he spends some of his valuable time in the Room.

There is absolutely no reason to be opinionated with the frequency of standard deviation moves.

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 past 2 Months.

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.

 

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

May Fan Mail:

Judd,

I followed you for 3 months before I subscribed to the matrix #’s.
Then, the light went on and understood what you were saying.
When I became profitable using your methodology I stepped up and took your course.

It’s been life changing.

David

Daily Market Intelligence Report is designed to feature high probability setups for next day trade.

The secret sauce to my work are the matrix #’s which are presented in a spread sheet.
Without the vision of the Matrix levels you will never truly learn to see.

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
Chief Market Strategist
Judd@whitewavetradingstrategies.com
Skype: juddhirsch
Twitter: whitewavetrader
Stocktwits: Judd Hirschberg

Phone 312-543-4070

WhiteWave Trading Strategies
www.whitewavetradingstrategies.com
info@whitewavetradingstrategies.com

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