Professor’s Comments February 5, 2019

Posted by OMS  at February 5th, 2019

After an initial early decline, the markets reversed and moved higher yesterday. The Dow finished the day up 175 points at 25,239.  The NASDAQ and SPX were up 84 and 18 points, respectively.  Volume on the NYSE was low, coming in at 87 percent of its 10-day moving average. Low volume rallies are always suspect.  There were 62 new highs and 6 new lows.

The Dow still appears to be completing wave ‘c’ up within Wave 2 up.  The Rising Wedge Pattern looks like it might need to rally of another 100-150 points before it completes.  Rising Wedges usually make a ‘through-over’ wave before they complete and that’s what I believe what is happening.  Student should realize that through-over waves are NOT required to complete the pattern, so the current Wave 2 rally can end at any time now.

There was another small change 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.

The Dow, NASDAQ, SPX, and RUT remain on Buy Signals. As long as the market timing indicators for these indexes remain positive, the markets can continue to push higher. The Dean’s List and Tide also remain positive

The Sector Ratio fell to 19-5 positive after yesterday’s session. The Strong List was led by Semiconductors, Household Products, Real Estate, Transportation, and PharmaBio.  The Weak Sectors were Telecoms, Energy, Food Drug, Autos and Food.

Gold (GLD fell 0.54 cents yesterday to 123.96.  It still appears that GLD is nearing completion of Wave 1 up and should begin its Wave 2 pullback soon.  If this happens, it would be very positive for the metal as it would suggest a major Wave 3 rally leg will begin after Wave 2 down completes.  I continue to look for buying opportunities near the 120 level.

Crude Oil (UCO) moved to a Neutral Signal yesterday as the volume portion of my VTI-volume indicator turned negative.  UCO continues to have trouble moving above its 50-day moving average.  If it can punch through the 50, the next target would be a ‘rope jump’ move toward the 200 which is currently located at the 23.91 level.  Then IF UCO can perform a ‘rope’ jump’, it would tell me a lot about the longer term price of the energy sector.

Bonds (TMF) moved to a Sell Signal after yesterday’s session as my VTI-volume indicator turned negative.  At this point, it’s not clear if this Sell Signal will stick, as TMF is in the process of forming the ‘Bade’ of a Bullish Hockey Stick Pattern. The pattern suggests that once a small pullback completes, TMF will resume its up-trend.  However, for now the indicators are negative, and I must respect the indicators.

BTW, just a few Comments on two tech stocks I have been watching the past few days. Last night Google or Alphabet (GOOG) announced less than stellar guidance last night and traders pounded the stock. Students should remember that GOOG remains in a down trend, (50<200) so any move now below the 1090 level would likely lead to lower prices. Same for Amazon (AMZN). The Bollinger Bands are narrowing at the same time the indicators are weakening. If AMZN starts to break below 1600, it will likely signal a pullback in technology. Yesterday, AMZN closed at 1633.

That’s what I’m doing,

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Market Signals for

02-05-2019

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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