Professor’s Comments September 18, 2013

Posted by OMS  at September 18th, 2013

The Dow rose 38 points, closing at 15,530. Volume on the NYSE was moderate, coming in at 90 percent of its 10 day average. There were 159 new highs and 34 new lows.

The Fed’s FMOC Meeting completes today. I don’t expect much from the meeting as most of the talk about tapering is already baked into the cake. But you never know.

Probably the best thing to do today is to wait until we hear just what the Fed says in their announcement.

The wave 3 rally is on. This rally should consist of five waves, eventually taking us above the 16,200 level. Wave 1 of 3 up still appears to have a bit more upside to go before a small wave 2 correction comes in.

The Dean’s List is long and strong, and all of the PT indicators are positive.

The Professor highlighted another 28 stocks last night as starting to enter the trend mode. The Professor continues to confirm wave 3 up is well underway, and that more and more stocks are participating. As long as The Professor continues to highlight stocks, I’ll just ride the wave. I will only start to get concerned when he stops highlighting issues, That will be the first early sign that that the trend is coming to an end.

Apple re-tested and held its low of 447 yesterday, finally closing at 455. The stock now has a beautiful HSw/Blade Pattern, with the 50 just under the 200. If the stock can rally in the days ahead, it could be the start of wave 3 up. The stock has a “Stick’ of 125 points, so If APPL starts to move higher, it could push the overall NASDAQ higher with it. Watch the PT indicators for a Buy Signal.

Also, remember to keep your eye on stocks for potential Rifle Trades. Yesterday, stocks like GILD pulled back such that its 2-period RSI Wilder became oversold. There should be many opportunities like this to trade additional shares in the weeks ahead.

Ford, F, has been forming a small HSw/Blade pattern for the past week. If the stock can move above 17.68, it should easily see 19.

Gold and silver stocks could be ready to take a big hit in the weeks ahead, All three of the PT indicators on Royal Gold, RGLD, are currently negative. SLV did not ‘Jump the Ropes’ on the current rally, and now by turning Red on the Daily’s, it appears that its downtrend is continuing. With the Fed talking about ending its stimulus program, the metals could get hit hard, retesting recent lows, and likely failing to hold them. Be careful with the metals here.

Riding the wave.

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
FAQ

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