Professor’s Comments April 12, 2016
Posted by OMS at April 12th, 2016
The Dow rose over 150 points early only to give back all of its gains and close down 21 points at 17,556. Volume was moderate, coming in at 98 percent of its 10-day average. There were 112 new highs and 10 new lows.
Yesterday was another wild day in the topping process. Most of my key breadth and volume indicators continue to show negative divergence telling me that a top is fast approaching. However, the downside momentum has not started yet.
Also, the Money Flow and P-Volume indicators I showed in my WSR last weekend remain negative. But 2 of the 4 breadth indicators that make up The Tide are still positive. So until The Tide turns negative, I remain on the sidelines.
There’s really not a lot I can do now.
Gold (GLD) had a nice pop yesterday. But it’s likely that all of the gold and silver stocks and ETFs on my Lists now are just telling me that wave ‘b’ up of an a-b-c sequence for wave 2 in gold is underway. If this is the case, I would expect gold (the metal) to trade a few points higher, maybe to the 1,265 level, before falling to under 1,200 as wave ‘c’ down of Wave 2 completes. In this scenario, GLD could trade to the 121 level before falling to 110. I’m still not ready to buy gold yet.
On the other hand, IF GLD starts to trade above the 123 level, it would likely mean that the wave 2 correction is over and wave 3 up has started. If this is the case, I would still wait for pullbacks before buying gold. This would be the classic ‘Rifle Trading’ scenario where I would wait for the 2-period RSI Wilder to become oversold and then use the 60s to enter the trades.
Being patient.
That’s what I’m doing,
h
Market Signals for
04-12-2016
DMI (DIA) | POS |
DMI (QQQ) | POS |
COACH (DIA) | NEG |
COACH (QQQ) | NEG |
A/D OSC | |
DEANs LIST | POS |
THE TIDE | NEU |
SUM IND | NEG |
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.
![](https://oneminutestock.com/wp-content/themes/figerobak/images/cat-img-1.png)
Category: Professor's Comments