Professor’s Comments August 29, 2018
Posted by OMS at August 29th, 2018
The markets were relatively flat yesterday. The Dow rose 14 points, closing at 26,064. The NASDAQ and SPX were up 12 and 1 point, respectively. Volume on the NYSE was moderate, coming in at 91 percent of its 10-day moving average. There were 114 new highs and 31 new lows.
There were no changes to any of The Professor’s VTI-volume indicator signals after yesterday’s session. All major markets for which signals are posted in the cockpit remain on Buy Signals, except for the U.S. Dollar which remains on a Sell Signal.
I’ve talked about the targets I’m using for the Dow (26,000 and 26,617+) many times in my Comments. However, I’ve never mentioned the levels I’m using for the SPX and NASDAQ. The reason is because these indexes are in the final waves of their Ending Diagonal Patterns. And because Ending Diagonals usually have a through-over wave, they are much harder to predict. But after yesterday’s session, these indexes are getting close to where their Ending Diagonal Patterns could potentially top, so I thought I better mention it.
The number I’m using for the broad based SPX is near the 2,920-2,930 level. Yesterday the index closed at 2,898, so it’s possible that the top is as close as 22 points away. That’s less than 180 Dow points. The NASADAQ is potentially in better shape, as the target I’m using for the techs is closer to 7,775-7,800. Yesterday the NAS closed at 7,559. The point I want to make here is that even though the markets are currently on VTI-volume Buy Signals, a potential top is fast approaching. Students should remember that no stock (or index), no matter how good ever goes to heaven. Stocks go to targets, and when they start to form the final wave of an Ending Diagonal Pattern, we usually have a pretty good idea of where that target is located.
So, for now, as long as the indicators remain positive, the indexes should continue to push higher. But once we start getting closer to the numbers I mentioned above, we need to be careful.
BTW, in the next few days, I will be making a few additional changes to the Professor’s VTI-volume indicator signals. Because I find it EXTREMELY helpful to know when an index is trending, I’ll be adding a trend notation to the signal. That way, you might not worry so much if you’re trading the Dow or NASDAQ with a leveraged ETF. I’ll also be adding the date of the signal, so you’ll be able to go back and check its performance.
I use these trend indications and dates all the time when I trade. For example, after the Dow generated a new Buy Signal on 17 August, it went into the Trend Mode on 21 August. This told me to keep my finger off the Sell Button, as once a stock or ETF enters the Trend Mode, it usually stays there for weeks. Contrast this with Gold, which generated a Buy Signal on 21 August, but has NOT entered the Trend Mode. In other words, by not Trending, I must be more cautious with my gold trades. I believe you will find these additions to be extremely useful in your trading.
The Sector Ratio increased to 21-3 positive after yesterday’s session. The Ratio is telling us that just about all of the Sectors in the S&P500 are moving up. It’s what you usually see in the final leg of a Bull Market. FoodDrugs, Telecoms, Household Products are still at the top of the Strong Sector List, but now Transportation, PharmaBio, CapGoods, Banks, Technology, and Consumer Products are right there with them. Because of the equal RS ratings of sectors 4-9, the Top 5 has expended to the Top 9.
The Material Sector, which includes gold, still leads the Weak Sector List followed by Service and Autos. I’m still waiting for the Materials Sector to move to the Strong List. Hasn’t happened yet, so I’m still being patient.
That’s what I’m doing,
h
Market Signals for
08-29-2018
DMI (DIA) | POS |
DMI (QQQ) | POS |
A/D OSC | |
DEANs LIST | POS |
THE TIDE | POS |
Professors Major Market
Timing Signals for
08-29-2018
DOW | POS |
NASDAQ | POS |
GOLD | POS |
U.S. DOLLAR | NEG |
BONDS | POS |
CRUDE OIL | POS |
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.

Category: Professor's Comments