Professor’s Comments February 23, 2018
Posted by OMS at February 23rd, 2018
The markets were mixed again yesterday. The Dow rallied hard at the open, but then gave back a good portion of its gains by the close. The industrials still managed to finish up 165 points at 24,962. The action on the NASDAQ was not as positive as the technology index finished down 8 points. The SPX was up 3 points. Volume on the NYSE was moderate, coming in at 90 percent of its 10-day average. There were 32 new highs and 79 new lows.
Yesterday’s choppy up-down-up trading was characteristic of a corrective sub-wave 2. If this is the case, the Dow should begin another impulse wave higher within the next day or so. This wave should take the Dow back to the 26,000 level, possibly higher. Remember, we still need to be cautious if the Dow approaches the 26,000 level, because this level could represent the top of the Bearish Scenario. Right now, the indicators are still mixed, so I’m still in the ‘trade’ mode. My combination VTI-volume indicator generated a Buy Signal on the Dow yesterday, but the same indicator on the NASDAQ is neutral. The Dean’s List has turned positive, but The Tide and the Money Flow indicators are still negative. With mixed indicators like this, all I can to is trade the short-term bars. And that’s what I was doing yesterday. I mostly scalped Exon-Mobile (XOM) and Chevron (CVX) as both stocks made large intraday moves from extreme oversold conditions. With DUG still on the Dean’s List and my VTI-volume indicator for energy still on a Sell Signal, I don’t feel comfortable holding energy stocks overnight. However IF the indicators start to turn positive on energy, I’ll gladly start holding them with March approaching. The Sector Ratio increased to 8-16 negative yesterday, which is a positive sign and supports the wave 2 Bullish scenario. If the Ratio turns positive after today’s trading, it would provide additional evidence that wave 3 up is starting. Computers, Consumer Products, Banks, Materials, and Healthcare continued to lead the Strong List. The Weak Sectors were the Autos, Telecoms, Real Estate, Transportation, and Utilities. Continue to stay in stocks and ETFs in the Strong Sectors and avoid those on the Weak List. Gold and most mining stocks were flat yesterday. GLD rose 0.64 points to 126.30. I’m still on Buy Signal for gold (the metal) but my VTI-volume indicator is still neutral on most mining stocks and ETFs, like GDX. Continue to watch gold as the pattern suggests it could be starting a major wave 3 up. That’s what I’m doing, h Market Signals for 02-23-2018
|
||||||||||||||||||
|
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