Professor’s Comments July 21, 2017
Posted by OMS at July 21st, 2017
The markets were mixed yesterday. The Dow fell 29 points, closing at 21,612. The NASDAQ finished up 5 points. Volume on the NYSE was moderate, coming in at 104 percent of its 10-day average. There were 214 new highs and only 10 new lows.
Not much changed after yesterday’s trading. All the cockpit indicators remain positive. The VTI on the Dow and NASDAQ remains in the Trend Mode. As long as the VTI remains positive and trending, the markets will likely continue to move higher. I’m still estimating another one percent or so. Then once the rally completes, the strength of the two Ending Diagonal Patterns should take over. Both patterns suggest lower prices.
One thing I did note after yesterday’s session was that a key indicator I use to measure volume has turned negative. So now that this indicator is negative, I’m just waiting for the VTI to turn negative. One of the things I’ve found in my research is that when the VTI turns negative while this custom volume indicator is negative, it usually pay$ to establish short or inverse positions. Given that the markets appear to be in final Wave ‘E’ up of a Major Ending Diagonal Pattern, any Sell Signal generated by the combination of these two indicators should not be ignored. I’ll let you know if/when this happens.
Other than that, I didn’t have anything to add to my earlier comments.
I’m off to California in the morning.
That’s what I’m doing,
h
BTW, I did buy my ‘trial’ positions in gold (GDXJ) and energy (XLE) when each pulled back yesterday. I’ll talk more about these trades in this weekend’s WSR.
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