Professor’s Comments November 25, 2014

Posted by OMS  at November 25th, 2014

The Dow rose 8 points, closing at 17,818.  Volume was moderate, coming in at 94 percent of its 10-day average.  There were 162 new highs and only 18 new lows.

Not much changed with yesterday’s trading.

The Dean’s List, PT indicators, and The Tide remain positive.  Until these indicators turn negative, the market will likely retain its Bullish bias.

Also, trading during the Thanksgiving week generally has a Bullish bias, so it’s likely that the market will maintain its positive bid until after the holiday.

I’m not seeing a lot of new buying taking place now, but there isn’t a lot of selling going on either.  Until the selling starts to pick up, markets will likely trade in a very narrow range.

One of the things I’ll be watching today is the candlestick pattern that formed during the past two days on the Dow and SPX.  Yesterday’s small move kept the price within the vertical range of Friday’s large candle.  The pattern is called a ‘Bearish Harami’ or ‘Mother and Baby’.  This two bar pattern is generally an indication that the previous upward trend could be coming to an end.  We’ll see. For the pattern to complete, prices must fall below Friday’s low and close the ‘gap’. This could be difficult for the market to do with the Bullish holiday and end-of-month bias that currently exists, but it is something to watch.

Most gold related stocks and ETFs continued to trade sideways yesterday forming ‘Blades’ just below their 50 day moving average.  Two of the three PT indicators on GDX have turned positive.  I’m still waiting for the P-volume to turn positive before doing any buying.  I’m also watching the PT indicators on Silver (SLV) which now has a positive P-volume.

Watching.

That’s what I’m doing.

h

Not sure of the terminology we use? Check out these articles

The Hockey Stick Pattern
The Creation of Waves and Trends
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