Professor’s Comments August 10, 2018

Posted by OMS  at August 10th, 2018

The markets were mixed yesterday.  The Dow fell 75 points, closing at 25,509,  The NASDSQ finished up 3 points while the SPX dropped 4 points. Volume on the NYSE was moderate, coming in at 95 percent of its 10-day average.  There were 115 new highs and 35 new lows.

Not much changed with the patterns or indicators after yesterday’s session.  Yesterday’s small pullback in the Dow appeared to be part of the “Blade’ of a small Hockey Stick Pattern.  If this is the case, the ‘Blade’ should form the base for the Dow’s next rally leg.

My combination VTI-volume indicator for the Dow and SPX remains on a Buy Signal with the momentum portion of the indicator in the Trend Mode.  Given the positive status of this indicator, I would still view any pullback as a buying opportunity.

The Sector Ratio fell slightly to 20-4 positive.  Telecoms, FoopdDrug, Transportation , PharmaBio, Cap Goods, and Semiconductors continue to lead the Strong Sector List.  The Weak List was led by Leisure, Healthcare, Computers and Material.

A few days ago, I talked about the relationship between the cruise lines and the cost of fuel. I told students interested in trading cruise line stocks to watch for DUG, the inverse oil and gas ETF, to replace DIG on the Dean’s List.  So, just after making the comment, DUG re-appeared on the List. Yesterday, Royal Caribbean (RCL) jumped 3 points. Carnival Cruise Lines rose 0.74 cents. Hmmm?  Students should also note how the ‘Bands’ on both stocks have tightened and could be ready for a ‘Squeeze’.  My combination VTI-volume indicator is on a Buy Signal for both stocks, However, the Leisure Sector is still on the Weak List.  I would like to see the Leisure Sector move to the Strong List during the next few days.  I really want to go cruising. 

The silver ETF, SLV, did not generate a Buy Signal as it closed at 14.52.  If the ETF moves above 14.60 today, it will likely generate the signal.

Watching cruise lines and the metals.

That’s what I’m doing,

h 

Market Signals for

08-10-2018

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
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.