Professor’s Comment Updates October 25, 2019
Posted by OMS at October 25th, 2019
The Dow, SPX, and NASDAQ have been trading in a very marrow range for the past seven trading sessions. This same type of sideways trading occurred back on 12-23 July, just before the markets began a 1,770 point decline.
The reason I’m alerting you to this ‘narrow range’ trading is because it usually results in some type of Big Move, up or down. So, while the market timing signals are mixed going into today’s session, the thing you need to understand is that the signals are very close to the zero line and could change in a heartbeat!
Please use EXTREME caution with your trading now. This is NOT the time to be getting aggressive.
Update:
With Amazon’s shares down big this morning after reporting less than stellar earnings, it’s another sign the economy is slowing. Because of this and the fact that my short term indicators have turned negative on the Dow, the Model will be selling its shares of DDM just after the open.
The odds on the Dow moving higher have shifted to 50-50 and I don’t like trading anything with even odds..
2nd Update:
Shares of DDM were just sold for 49.34.
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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