Professor’s Comments 9/11/19

Posted by OMS  at September 11th, 2019

The markets were mixed again yesterday, with the Dow gaining 74 points while the technology laden NASDAQ dropped 3 points.  The S&P was flat.  Yesterday was the third consecutive day that the S&P traded in a narrow range, less than 3 points, which is usually associated with some type of consolidation or triangle pattern. Consolidation patterns are not reversal patterns. Prices usually leave a consolidation area in the same direction they enter the area, which means that the markets next move will likely be up.  Given the overall pattern and the fact that the indicators have turned bullish, it’s likely the markets will make one more final push higher in the days ahead to complete Wave 2 up before heading down.  The pattern suggests that final sub-waves of Wave 2 up should complete within a week or so near the 27,100-27,300 level.

Because yesterday’s early decline was not impulsive, the Model sold its shares of inverse index ETFs late yesterday and is now on the sidelines.  The Model will look to re-establish its position in DXD and SQQQ at lower prices.

There was another small change in the A-D oscillator yesterday, the third consecutive day, so we need to be on the lookout for a Big Move within the next 1-2 days.

The market timing indicator on the Dow remains Positive. The NASDAQ, SPX, and Russel 2K are on Neutral Signals. So, the signals are still mixed, which is usually a good indication that a corrective rally is underway.  

The Tide and Dean’s List are Positive.

The Sector Ratio improved to 21-3 Positive after yesterday’s session.  Seeing the Ratio turn so positive was one of the reasons the Model sold its inverse shares.

Gold continued its pullback yesterday with GLD dropping 1.21 to 140.18. In my cheat sheet, I mentioned that GLD could retrace to the 137 level during its Wave 4 pullback.  So far, the pullback has been straight down, so it’s likely GLD will bounce and fall a few times before Wave 4 is complete. My target for GLD remains at the 137 level.  BTW, once this pullback completes, gold (the metal) should rally to the 1,600 to 1,650 level as Wave 5 of Major Wave 3 up unfolds.  The Model is just being patient and waiting for a signal change before buying gold again.

The Model was up 26.3 percent after yesterday’s session.  Price received for yesterday’s sale of DXD was 25.84. Average price received for SQQQ was 32.365.

The Model Portfolio is being shown for educational purposed only.  The Buy/Sell actions in the Model Portfolio are made based on technical indicators that can and do change frequently and should NOT be considered as recommendations for trading an actual portfolio.  Any gain or loss in the Model Portfolio should not be used to predict future performance of the Model.

That’s what I’m doing,

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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

Not sure of the terminology we use? Check out these articles

The Hockey Stick Pattern
The Creation of Waves and Trends
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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.