October Update

October Update
Good day, here is WhiteWave’s October 2018 Update

                                                       Context

As is typical with market corrections, they seemingly come out of nowhere catching most investors off-guard. This most recent correction which began early October was no exception. 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 and again  @ the beginning of October 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. Our models signaled the same breakdown the first week of October. For active traders our intraday alerts provide trading levels for day-traders and those wishing to trade counter-trend moves.

                                                   Forecast

The October 2018 volatility arrived with a vengeance causing the biggest correction in U.S. Indices since the April 2018 low. The rout was led by the Small Cap Russell 2000 right after the beginning of the fourth quarter buying by pension funds, mutual funds and 401K’s was completed.

The dislocation in the Bond market has investors re-weighting their risk exposure.
Bond yields are now approaching levels that will start to compete with the yield on Equity names. This should create even More volatility. We are not ruling out a deeper correction within a longer-term Bullish trend.

U.S. Treasury purchases should be limited to 3 month Instruments.

Oct. 4th we went intermediate-term bearish Equity Indices.

Oct.15th we were looking for a retest of the low.

Risk Models have sufficiently broken down that we are looking for more mean reversion of the Trump Post election rally. Growth is slowing. We will await confirmation from our models before we recommend long-term buy and hold.

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.

This is the second 300 point correction we’ve telegraphed this year after our published upside price target for the S&P 500 @ 2965 was missed by a mere 20 Points in late September.

WhiteWave keeps you executing timely trades through the use of proper trade location.

WhiteWave October 2018 Update for Long-Term Investors /RIA’s

We went neutral all Equity Indices on Thursday 10/4/18. Therefore, RIA’s should not be adding exposure to Equities.

October 11-15 we were looking for trading rallies not long term investments.

October 15 we went bearish looking minimally for a retest of the low.

Risk models need time to repair the price damage from this sell off.

The Indices are trading short-term oversold. Our long-term models have barely begun a mean reversion which will keep us neutral.

WhiteWave Sept 2018 Update for Short-Term Investors

October focusVXX

10/4 Long VXX NOV 16 30-40 Call Spread

WhiteWave keeps you executing timely trades through the use of proper trade location.

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

October Fan Mail;

Hey Judd thanks for the heads up!
I exited my growth exposure the last week of September on the highs.
ANG

Great Great call on QQQ Longs 10/15!!!
Gary
Thanks for getting me out of the QQQ @ the high on 10/16.
Great Trade! 300 point Nasd 100 winner!
Shawn

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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