Professor’s Comments February 27, 2019
Posted by OMS at February 27th, 2019
The markets pulled back mildly yesterday. The Dow was off 34 points, closing at 26,058. The NASDAQ and SPX were down 5 and 2 points, respectively. Volume on the NYSE was moderate, coming in at 95 percent of its 10-day moving average. There were 79 new highs and 10 new lows.
The markets marked time for most of yesterday as Fed Chairman Powell’s testified before Congress. He used his brand of Fed speak to talk out of both sides of his mouth on interest rates and other related issues. Nothing changed. The markets are still at a point where they can go either way. I have one scenario that allows them to continue to push higher, while another suggests a three wave a-b-c pullback is about to begin. Forget the scenarios…pay attention to the indicators.
One thing I did note after yesterday’s session was the low value of the A-D oscillator. Yesterday it came in at 21.2 which is its lowest reading since 31 December. The reason this is important is because if the market declines today, the A-D oscillator could turn negative. That would turn The Tide neutral. And IF The Tide begins to turn, it increases the odds for a corrective a-b-c pullback. Remember, what I said yesterday….IF, and right now it’s still a Big IF, the Dow begins to pullback in Wave 2, the pattern suggests it could decline to the 24,500-24,800 level before it completes.
There were no changes to my market timing signals for equities. All major equity indexes remain on Buy Signals.
The Tide and Dean’s List remain positive.
The Sector Ratio remained at 23-1 positive after yesterday’s session. The Strong List was led by Semiconductors, Technology, Service, Household Products, and CapGoods. The only Weak Sector was FoodDrug.
Gold was relatively flat yesterday. GLD finished 0.21 cents higher at 125.58. Gold remains on a Buy Signal with a short-term pattern that suggests a small wave 2 pullback is approaching. If gold does pull back, I continue to view it as a buying opportunity.
Crude Oil (UCO) rested on its 50-day moving average yesterday. I used the opportunity to buy shares of UCO for the Model Portfolio. BTW, with UCO showing oversold conditions on its 2-period RSI, I used the ‘Rifle Trading’ techniques I teach in Class and in my webinars to trigger the trade. Crude Oil remains on a Buy Signal.
Model Portfolio: The Model made its first purchase yesterday. It is now 25 percent invested in Crude Oil (UCO) and 75 percent in cash.
That’s what I’m doing,
h
Market Signals for
02-27-2019
DMI (DIA) | POS |
DMI (QQQ) | POS |
A/D OSC | |
DEANs LIST | POS |
THE TIDE | POS |
Index | Signal | Signal Date |
---|---|---|
DOW | POS | 15 Feb 2019 |
NASDAQ | POS | 07 Jan 2019 |
GOLD | POS | 25 Jan 2019 |
U.S. DOLLAR | NEU | 26 Feb 2019 |
BONDS | NEU | 22 Feb 2019 |
CRUDE OIL | POS | 13 Feb 2019 |
One hour video recorded from May 28, 2016 The Professor’s Signs of a Major Market Turn – Prospectives and the Projected Timing and Levels One hour streaming video – includes webinar handouts The Professor usually holds an update class whenever the Market looks like it may be making a major turn. If you have been following the Professor’s Comments you know that a turn is due….. LEARN MORE
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The Hockey Stick Pattern
The Creation of Waves and Trends
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