Professor’s Comments August 31, 2016
Posted by OMS at August 31st, 2016
The Dow fell 49 points, closing at 18,454. Volume was moderate, coming in at 98 percent of its 10-day average. There were 169 new highs and only 9 new lows.
Yesterday’s decline was NOT impulsive, so it still appears that it was part of a corrective wave within final Wave ‘c’ to a top. With the August Jobs Report coming out on Friday, I don’t expect the markets will be doing much for the next few days. And then with the Bullish Labor Day Weekend coming on the heels of the Jobs Report, we could see the final rally to the top take place next week to complete the Expanding Top Pattern.
The cockpit indicators remain mixed, and I’m still not getting anything from my Trend indicators that tell me a new trend is starting. And without a trend in place, I’m not interested in being whip sawed by the up-down choppy moves this market will continue to make as it pushes toward its final top.
Last night when I ran The Professor, he only had 10 longs to go with 3 shorts. So while he continues to maintain a positive bias, for all practical purposes, he’s sleeping.
Same for Emeritus. Last night he only highlighted one stock for the Honor Roll. Whenever I see one or two stocks highlighted, I usually ignore them unless I plan to scalp trade that day. That’s because the odds are low when only a few stocks appear. Remember that Emeritus is also a trend algorithm, so when he is only highlighting a few stocks, it’s telling you that he doesn’t see much. I like to trade his picks on a VTI turn, but only when I see a lot of them being highlighted in the direction of the VTI turn. This is NOT happening now.
Speaking of the VTI, it changed direction again after yesterday’s trading. However, the indicator is still showing a neutral reading of 54.9 with the 2-period RSI also in neutral territory (43.4). So if the market declines a bit today, and pushed the 2-period RSI into oversold territory, it will set up the final rally to a top.
Students should also note that since the VTI turned negative on 19 August, the Dow has declined about 100 points. Also, the VTI moved out of the Trend Mode on 24 August telling us the Up Trend on the Dow was over. And since then, all we’ve had has been a series of down-up- down moves tied closely to the 2-period RSI Wilder. So like I said above, if the 2-period RSI moves into oversold territory today, you might want to watch the indicator for a potential scalp trade.
Gold and gold stocks got hit hard yesterday, with GLD declining 1.27 points to 125.03. Since the VTI on GLD turned negative on 19 August, GLD has pulled back almost 3 points. The VTI on GLD continues to decline and is now showing a reading of 34.47, which is still not in the trend mode. The 2-period RSI Wilder is oversold with a reading of 8.23, and is showing positive divergence since the ETF made its previous low on 25 August. As long as the VTI continues to support the triangle pattern, I will continue to hold my gold shares and look for opportunities to add to them with Rifle Trades.
That’s what I’m doing,
h
The Dow fell 49 points, closing at 18,454. Volume was moderate, coming in at 98 percent of its 10-day average. There were 169 new highs and only 9 new lows.
Yesterday’s decline was NOT impulsive, so it still appears that it was part of a corrective wave within final Wave ‘c’ to a top. With the August Jobs Report coming out on Friday, I don’t expect the markets will be doing much for the next few days. And then with the Bullish Labor Day Weekend coming on the heels of the Jobs Report, we could see the final rally to the top take place next week to complete the Expanding Top Pattern.
The cockpit indicators remain mixed, and I’m still not getting anything from my Trend indicators that tell me a new trend is starting. And without a trend in place, I’m not interested in being whip sawed by the up-down choppy moves this market will continue to make as it pushes toward its final top.
Last night when I ran The Professor, he only had 10 longs to go with 3 shorts. So while he continues to maintain a positive bias, for all practical purposes, he’s sleeping.
Same for Emeritus. Last night he only highlighted one stock for the Honor Roll. Whenever I see one or two stocks highlighted, I usually ignore them unless I plan to scalp trade that day. That’s because the odds are low when only a few stocks appear. Remember that Emeritus is also a trend algorithm, so when he is only highlighting a few stocks, it’s telling you that he doesn’t see much. I like to trade his picks on a VTI turn, but only when I see a lot of them being highlighted in the direction of the VTI turn. This is NOT happening now.
Speaking of the VTI, it changed direction again after yesterday’s trading. However, the indicator is still showing a neutral reading of 54.9 with the 2-period RSI also in neutral territory (43.4). So if the market declines a bit today, and pushed the 2-period RSI into oversold territory, it will set up the final rally to a top.
Students should also note that since the VTI turned negative on 19 August, the Dow has declined about 100 points. Also, the VTI moved out of the Trend Mode on 24 August telling us the Up Trend on the Dow was over. And since then, all we’ve had has been a series of down-up- down moves tied closely to the 2-period RSI Wilder. So like I said above, if the 2-period RSI moves into oversold territory today, you might want to watch the indicator for a potential scalp trade.
Gold and gold stocks got hit hard yesterday, with GLD declining 1.27 points to 125.03. Since the VTI on GLD turned negative on 19 August, GLD has pulled back almost 3 points. The VTI on GLD continues to decline and is now showing a reading of 34.47, which is still not in the trend mode. The 2-period RSI Wilder is oversold with a reading of 8.23, and is showing positive divergence since the ETF made its previous low on 25 August. As long as the VTI continues to support the triangle pattern, I will continue to hold my gold shares and look for opportunities to add to them with Rifle Trades.
That’s what I’m doing,
h
One hour video recorded from May 28, 2016 The Professor’s Signs of a Major Market Turn – Prospectives and the Projected Timing and Levels One hour streaming video – includes webinar handouts The Professor usually holds an update class whenever the Market looks like it may be making a major turn. If you have been following the Professor’s Comments you know that a turn is due….. LEARN MORE
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The Hockey Stick Pattern
The Creation of Waves and Trends
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