Professor’s Comments December 27, 2017

Posted by OMS  at December 27th, 2017

The markets fell mildly yesterday.  The Dow finished down 8 points, closing at 24,741.  The NASDAQ and SPX fell 24 and 3 points, respectively.  Volume on the NYSE was low, coming in at 72 percent of its 10-day average.  There were 174 new highs and 26 new lows.

Not much changed after yesterday’s low volume session.  However, there was a small change in the A-D oscillator, so we could see a Big Move within the next 1-2 days.  If that move is down, it could produce changes to several of my key indicators.  We’ll see.

The reason I say this is because my VTI-volume indicator on the NASDAQ is very close to generating a Sell Signal.  The Volume portion of the indicator has already turned negative, so all it needs is for the momentum to turn south.  If that happens, it would be a Big negative for large cap technology stocks.

The same indicator on the Dow is still positive, so we could see a mixed market develop as the large cap industrial stocks rally, led by energy, while technology stocks start to roll over.   Last week, I had to raise my target for the Dow to above the 25,000 level, because of the wave count.  I’ll stay with that target for now.  But IF the NASDAQ moves to a Sell Signal, it will likely impact the final rally wave on the Dow.

Tuesday’s Sector Ratio increased to 21-3 positive. The Strong List was led by Food Drugs, Energy, Transportation, Cap Goods, and Healthcare.  The Weak List was led by Utilities, Insurance, and PharmaBio. Continue to stay in stocks and ETFs in Strong Sectors and avoid or short those in the weak sectors.  Also, continue to watch for changes to the Sector Ratio.  If the Ratio stays strong, the odds are high that the current rally will continue to challenge the 25,000 level.

That’s what I’m doing,

h

BTW, today is moving day for me.  Marcia and I have already packed and moved most of the smaller items into the new house.  Professional movers will be moving the heavy stuff later today.  The last items I’ll be moving will be my computers. If we’re successful at getting the internet re-connected, the Lists and Comments will be updated and posted as usual.  Otherwise, there might be a small delay until I get things get sorted out. Please bear with me during this trying time.  

Market Signals for

12-27-2017

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

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