Professor’s Comments – A Few Thoughts 11/19/2021

Posted by OMS  at November 19th, 2021

The markets were mixed yesterday with the Dow (DIA) and RUT (IWM) down, while the S&P and NASDAQ traded higher.  Yesterday’s trading did NOT produce any changes to the Arrows on the 2 hour charts.   The DIA and RUT remain on Red Arrows; the SPY and QQQ remain on Green Arrows.

The Dow closed below the 35,915 H&S neckline which is now acting as resistance to any rally.  In Thursday’s Comments I mentioned that it was not unusual for an index to test and re-test this support level. That has been done and the re-test did not break above the critical support level.  In other words, Wave 3 down could start at any time now.

I’m already short the Dow (DIA) and RUT using two inverse leveraged ETFs, SQOQ and TZA.  Today, I’ll be watching a 120 min chart on SQQQ and SPXU.  If I see a confirmed Green Arrow on either ETF, I’m in.

The reason I’m looking to short the NDX is because I had been using the 16,500 level as my target. That target level was hit yesterday, so now I’m just waiting for a change in Arrows.

That’s what I’m doing.

h

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