Professor’s Comments September 13, 2013
Posted by OMS at September 13th, 2013
Not much changed with the markets yesterday. With the Dow down 25 points, it was good day to go shopping for bargains from The Lists.
Remember, IF I’m right about this being the start of wave 3 up, a shallow pullback like the one we had yesterday is usually a good time to go shopping. And when there is a small change in the A-D oscillator on the board, any pullback within an impulse wave is usually an especially good time.
Anyhow, right now now I’m pretty much fully invested.
I’m saving a few bucks just in case something crazy happens with Syria, but my back up plan is APPL.
APPL has an outside chance to fall to the 450-460 level. If this happens and then starts to turn positive, I still believe the stock will lead the NASDAQ higher. But right now the stock is still in a downtrend (50<200), with 2 of the 3 PT indicators on the Daily Chart being negative. On the positive side, AAPL jumped the ropes on 8/13, which is something I cannot ignore. The stock turned positive after a TLB Pattern on 7/16 at the 426 level. The move into the rope jump took the stock to 505. So now the pullback must be viewed as a potential wave 2. Like I said, If APPL starts to turn positive in the weeks ahead, it could lead the NASDAQ higher. That’s why I’m watching it now. Specifically, I want to see all of the PT indicators turn positive. If they do, I’m a buyer. That’s because the next significant move up in APPL could put it into an Uptrend. Wouldn’t that be different for AAPL. The stock hasn’t been in an Uptrend for 9 months!
On the other hand, if the move in AAPL doesn’t happen, I might use some of my remaining funds to buy one more stock from the MWL, or to have a reserve to short gold.
During the past few days, Royal and many of other gold stocks turned negative once again on the Daily’s. Gold is still in a downtrend, and the 35-period CCI could be ready to drop below -100. If this happens there is a good chance that gold and gold stocks could trade substantially lower. But right now, I’m not really interested in shorting gold. I believe most of the potential in this market is on the long side.
That’s what I’m doing,
BTW, I’m still in the hospital. The Docs are treating a small A-fib problem with meds And now they’re talking about a Saturday release date.
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Category: Professor's Comments