Professor’s Comments February 21, 2018
Posted by OMS at February 21st, 2018
The markets were mixed yesterday. The Dow fell hard dropping 255 points to close at 24,965. The NASDAQ was only down 5 points; the SPX down 16. Volume on the NYSE was low, coming in at 82 percent of its 10-day average. There were 62 new highs and 46 new lows.
Yesterday’s decline was expected after five consecutive positive days during options expiration week. In the Bullish Scenario, yesterday’s decline could be the start of wave ‘c’ of developing triangle for wave 4. In the Bearish Scenario, it could be the start of wave 3 down. Right now, it’s still too early to tell. Because both scenarios have an equal chance of being right, we need to watch the indicators.
Right now, my combination VTI-volume indicator on the Dow is neutral. However, the volume portion of the indicator is still pretty positive. The same indicator on the NASDAQ is positive. As long as it stays positive, I will remain Bullish. If it turns negative, the odds increase that the Dow topped on 26 January and the rally since 9 February is retracement wave 2 up with wave 3 down to follow.
The Sector Ratio fell to 10-14 negative. Computers, Household Products, Semiconductors, Banks and Healthcare led the Strong List. The Weak Sectors were the Utilities, Real Estate, Autos, Transportation and Energy.
BTW, students should note that even though the Dow was down 255 points yesterday, Intel (INTC) and Microsoft (MSFT), two stocks in the strong Computer Sector, were up 0.76 and 0.72 points respectively. Pretty amazing!
Continue to stay in stocks and ETFs in the Strong Sectors and avoid those on the Weak List.
Gold and most mining stocks fell yesterday. GLD dropped 1.72 points to 126.24. I’m still on Buy Signal for gold (the metal) but my VTI-volume indicator is still neutral on most mining ETFs, like GDX.
That’s what I’m doing,
h
Market Signals for
02-21-2018
DMI (DIA) | NEG |
DMI (QQQ) | NEG |
COACH (DIA) | POS |
COACH (QQQ) | POS |
A/D OSC | |
DEANs LIST | POS |
THE TIDE | NEU |
SUM IND | NEG |
VTI | NEG |
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