Professor’s Comments August 10, 2018
Posted by Laurie Liessmann 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,
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Category: Professor's Comments