Professor’s Comments April 5, 2016
Posted by OMS at April 5th, 2016
The Dow fell 56 points, closing at 17,737. Volume was moderate, coming in at 102 percent of its 10-day average. There were 147 new highs and 10 new lows.
The internals of yesterday’s decline were a lot weaker than the 56 point would indicate. Declining issues swamped advancers by a 3:1 margin. This caused the A-D oscillator and the Summation Index to turn negative, which in turn caused The Tide to turn neutral.
So now two of the four breadth indicators that make up The Tide are negative. Once The Tide turns, I’ll start looking to buy inverse index as they appear on the Dean’s List.
Looking at the other breadth and Money Flow indicators, it appears that one more down day like yesterday could turn them negative. The Up-Down oscillator had a reading of 34.4 which is its lowest reading since the current rally began on 16 February.
All I’m doing now is waiting. If the Dow breaks below last Friday’s low of 17,568, it would be another indication that Major Wave 3 down is starting. But right now, I really want to see more Red indicators on the cockpit before I get negative.
BTW, I’m still on a neutral signal for gold. Yesterday gold closed at 1,211. I’m still looking for it to trade under 1,200, possibly as low as 1,150. If this happens, a really nice wave 2 ‘Blade’ will form on the wave 1 ‘Stick’. This would project significantly higher gold prices later this year.
Waiting.
That’s what I’m doing,
h
Market Signals for
04-05-2016
| DMI (DIA) | POS |
| DMI (QQQ) | POS |
| COACH (DIA) | POS |
| COACH (QQQ) | POS |
| 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.
Category: Professor's Comments