Professor’s Comments – Before the Open 10/28/22

Posted by OMS  at October 28th, 2022

In yesterday’s Comments I discussed how the 10-day TRIN came in with a reading of 0.70. Because I haven’t seen low TRIN levels like this in a long time, I spent some time researching this and found a good correlation between TRIN levels below 0.80 and market tops. Yesterday’s TRIN was 0.78.

Also, there was a small change of 3 points in the A-D oscillator last night, so we need to be on the lookout for a Big Move within the next 1-2 days. Once again, this small change signal is coming at a time when the market is experiencing extremely overbought conditions and in a pattern that suggests minor wave 2 up is either complete or nearing completion.

Bottom Line:  Wave 3 down, the next impulse wave of the Bear Market, could start at any time now.  Please be careful with your trading.

h

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.