Professor’s Comments April 25, 2014

Posted by OMS  at April 25th, 2014

The Dow was unchanged yesterday, closing exactly where it was the day before at 16, 501.65.  Volume was moderate on the rally, coming in at 97 percent of its 10 day average.  There were 133 new highs and only 16 new lows.

It appears that the markets are getting ready for a significant rally.  The first wave of a five wave sequence for wave ‘c’ up appears complete.  Next should be a small pullback that last 2-3 days for wave 2.  Then once this pullback completes, the impulse wave 3 or wave 3 up should begin.

If we get a small pullback today, I will start putting some money to work. 

At this point I still don’t see any new sectors starting to emerge as leaders.  Energy is still the strongest sector, with Big Pharma starting to move up.

If the market does pull back today, I want to see which stocks and sectors hold their ground.  This should tell us more about where the new strength will come from.

Watching.

That’s what I’m doing.

h

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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