Professor’s Comments September 24, 2019

Posted by OMS  at September 24th, 2019

The markets were mixed yesterday. The Dow finished with a gain of 15 points at 26,950. The NASDAQ and SPX were down 5 and 1 point, respectively. Volume on the NYSE was extremely light, coming in at 80 percent of its 10-day moving average. There were 113 new highs and 16 new lows.

Yesterday’s trading did not provide any clarity to either of the scenarios I have been discussing recently. It’s still possible that the Dow could rally within the next few days back to the 27,307 level and then make a run at 27,500 before falling. It’s also possible that the Dow has completed its Wave 2 and is in the initial stages of Wave 3 down. If this is the case, the next decline should begin to break below the 28,830 level which would project a move down below the 3 September low near 26,000. The Wave 2 scenario remains my primary scenario as long as the Dow stays below 27,307.

There was a small change in the A-D oscillator of less than 2 points, so we need to be on the lookout for a Big Move within the next 1-2 days. If the market rallies during the next day or so and stays below 27,307, the Model will look to add to its position in inverse index ETFs.

The market remains in a very fragile condition.

The DMIs on the Dow and NASDAQ turned Negative after yesterday’s session.

The Dean’s List and Tide remain Neutral.

The Sector Ratio remained at 19-5 Positive after yesterday’s session.  The Strong Sector List was led by Service, Semiconductors, Food Drugs, Healthcare, and Consumer Products. The Weak Sectors were Leisure, Media, Transportation, Real Estate and Foods.

Gold (GLD) had a nice pop yesterday with GLD gaining 0.80 to 143.75. The move appeared to be a wave ‘b’ within an a-b-c wave corrective structure. Once this small wave completes, wave ‘c’ should take GLD back to the 137-138 level to complete Wave 4 . After Wave 4 completes, gold (the metal) should rally to the 1,600 to 1,650 level as Wave 5 of Major Wave 3 up unfolds.  The Model continues to wait for a signal change before buying gold again.

Bonds were flat yesterday and appear close to having their corrective wave complete. Once the current rally completes, Bonds should begin to move lower. All I’m doing now is waiting for a signal change before adding a few shares of TBT, the inverse ETF for Bonds, to the Model.

There were no changes to the Model after Monday’s session. The Model continues to hold a ‘trial’ position of 600 shares of SQQQ.. The Model is currently up about 26.8 percent with $107,169 in available cash..

The Model Portfolio is being shown for educational purposed only.  The Buy/Sell actions in the Model Portfolio are made based on technical indicators that can and do change frequently and should NOT be considered as recommendations for trading an actual portfolio.  Any gain or loss in the Model Portfolio should not be used to predict future performance of the Model.

That’s what I’m doing,

h

Market Signals for

09-24-2019

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.