Professor’s Comments – Before the Open 1/15/2021

As expected, the Dow rallied early to a new high of 31,224 before pulling back to close 69 points lower at 30,992.  It’s possible that yesterday’s high was the end of the Bull Market.  We’ll know if the Dow starts to trade below 31,890 in the next day or so.  Yesterday’s late decline did not cause the Scalp Trading Volume indicator on the Dow to turn negative, but it came close.  Any further decline today could do the job, so pay attention the indicators.  The volume indicator on the NASDAQ-100 (QQQ) did turn negative.

Remember, as I demonstrated in the follow-on ST training session, every time the volume indicator turned positive last year, all the top stocks from the Member’s Watch List rallied hard.  Most had substantial gains.  More importantly, there were no losers.  So, IF the same indicator begins to turn negative, we need to pay attention.   A negative volume indicator would be a strong signal, but for the market to decline it MUST be followed by a momentum shift.  Right now, the momentum indicators on most of the indexes are still in the Trend Zone.   They MUST move out of the Trend Zone before any serious move to the downside can begin.  If you see the trend end on one of your stocks when the volume indicator is negative, you might want to begin managing your money.

BTW, don’t know if you noticed, but yesterday, even though the Dow finished 69 points lower, 6 of the 7 top stocks on Wednesday’s MWL posted gains. That’s what top stocks are supposed to do!  The only exception was Tesla (TSLA).  Top stock, DDD gained 8.51 points to 32.01. Amazing!!!  Newly listed WPRT finished 0.12 cents higher.  BIDU was up 12 bucks.  CLF was up 12 cents.  BBBY was up over 4 bucks!  On Wednesday BBBY was at 23; now it’s a $27+ stock!  TAN was up 0.77 cents.   Need I say more?  Hmmm?  When the market rallies, you know which stocks are going to lead the way higher.  They’re the ones at the top of the MWL.

If you still haven’t taken the Scalp Trading Class and the follow-on session, you might want to think about doing it now.  Do yourself a favor and get educated.  This past week I have received several emails from students who are absolutely ‘killing’ this market.  When I shared some of these comments with Doc H., he sent me an email back saying, “Killing it- is an understatement!”   Don’t take my word for it…just go back and look at what all the top stocks on the MWL have done since 18 December when the volume indicator turned positive.  Then go back and check the List on 3 November, another time the volume indicator turned positive.  It’s all there in black and white for your review.

Bottom Line:  The ST indicators tell you when it’s time to buy and sell stocks. The MWL tells you which stocks to trade. No more guessing or relying on tips.  Don’t think about it anymore…. just do it.  Get the Class. I’ll make sure you also get some additional follow on training so you can take advantage of the next market turn. 

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