Professor’s Comments February 26, 2015
Posted by OMS at February 26th, 2015
The Dow rose 15 points, closing at 18,225. Volume was moderate, coming in at 99 percent of its 10-day average. There were 159 new highs and only 15 new lows.
There was a small change in the A-D oscillator yesterday, so we need to be on the lookout for Big Move within the next 1-2 days.
The Dean’s List, Tide, and the cockpit indicators remain positive. As long as my Lists and indicators remain positive, I’m positive.
Gold shares had a nice day yesterday after gold (the metal) held support at the 1200 level. Royal Gold (RGLD) popped 1.53 points and could be breaking out of the Hockey Stick pattern it has been developing since mid-December. The reason I’m watching Royal now is because it is one of the few gold stocks currently in an Uptrend. The Bollinger Bands have narrowed, suggesting a Big Move is coming. All I’m doing now is waiting for a few gold stocks and ETFs to appear on my Lists, and then watching for Green PT indicators.
I also bought a few shares of C & J Energy Services (CJES) yesterday when the PT indicators turned Green on the 60s. I purchased the stock because its 2-period RSI Wilder was oversold on the Daily Chart with Green indicators. The stock was On-Sale, ranked #2 on the MWL and DIG was telling me that I had a favorable environment to trade energy. BTW, CJES was also highlighted by Emeritus for the Honor Roll almost two weeks ago at the 11+ level. Now the stock is trading above 13.
I mention this today because if you have been watching The Honor Roll, you know that it has been Red Hot! Yesterday, all three of the stocks highlighted had gains, even though only one was a long and two were shorts. And last week’s pick of Chicago Bridge and Iron (CBI), jumped almost 6 points yesterday to close at 47.65. Talk about a nice move after a classic TLB Pattern. I am attaching a chart of CBI so you can see the pattern.
Last week, I talked about needing to have a compelling reason before I bought a stock in this market as it approached the 18,300 level. Seeing a stock on the Honor Roll with a pattern (TLB) is a compelling reason.
So IF you are looking for something to trade, always consider stocks that Emeritus has highlighted for the Honor Roll. Remember, Emeritus is an algorithm that looks for stocks that have the potential to trend. There are no guarantees that these stocks will trend, but whenever The Tide is favorable, the odds increase for a successful trade.
Same thing when you see a ‘Stick in the Sand’ like DIG on the Dean’s List and you see Emeritus highlight an energy stock like CJES for the Honor Roll, you might want to pay attention.
Watching gold and trading energy.
That’s what I’m doing.
h
Market Signals for 02-26-2015 |
|
---|---|
DMI (DIA) | POS |
DMI (QQQ) | POS |
COACH (DIA) | POS |
COACH (QQQ) | POS |
A/D OSC | SM CHG |
DEANs LIST | POS |
THE TIDE | POS |
Not sure of the terminology we use? Check out these articles
The Hockey Stick Pattern
The Creation of Waves and Trends
FAQ
All of the commentary expressed in this site and any attachments are opinions of the author, subject to change, and provided for educational purposes only. Nothing in this commentary or any attachments should be considered as trading advice. Trading any financial instrument is RISKY and may result in loss of capital including loss of principal. Past performance is not indicative of future results. Always understand the RISK before you trade.
Category: Professor's Comments