Professor’s Comments August 9, 2016

Posted by OMS  at August 9th, 2016

The Dow fell 14 points, closing at 18,529.  Volume was low, coming in at 89 percent of its 10-day moving average.  There were 316 new highs and only 3 new lows.

Not much changed with the cockpit indicators after yesterday’s small decline.  The DMIs, the VTI, and Dean’s List remain positive. The Tide remains neutral.

However there was a small change in the A-D oscillator of less than 6 points, so we need to be on the lookout for a Big Move during the next 1-2 days.

This particular small change signal could be important because the VIX closed back above its lower Bollinger Band yesterday, generating a VIX Sell Signal.  VIX sell signals tend to be very reliable signals, but the market usually takes few days before it starts to move south..  However, given that there is a Small Change Signal and a VIX Sell Signal on the board at the same time,, the market could begin its move lower within 1-2 days. We’ll see.

The 2-period RSI Wilder on GLD closed with an oversold reading of 10.48 with the VTI at a neutral 56.81 reading on the VTI.  In other words, GLD is oversold with no trend.  If the Dow starts to move lower within the next 1-2 days, look for GLD to resume its rally. I continue to watch the 60s on GLD and other mining stocks for Rifle Trades.

That’s what I’m doing,

h

Market Signals for

08-09-2016

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