Professor’s Comments February 6, 2019

Posted by OMS  at February 6th, 2019

The markets rallied early, then fell into the early afternoon only to rally again into the close.  The a-b-c rally may have been the final sub-waves of wave ‘c’ up of Wave 2 up.  We’ll see. 

The Dow finished the day up 172 points at 25,411.  It got as high as 25,427.  Yesterday I mentioned the through-over wave on the Dow likely needed another 100 to 150 points before completing.  So now, even if the Dow rises today, the pattern is complete from a technical perspective.  The NASDAQ and SPX were up 55 and 13 points, respectively.  Volume on the NYSE was moderate, coming in at 96 percent of its 10-day moving average. There were 94 new highs and 4 new lows.

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.

Note: Now that the pattern on the Dow appears complete, students should watch for a change in the market timing signals on the cockpit.

There were no changes to the Sector Ratio.  It remains at 19-5 positive.  If Wave 2 up is complete, students should watch for any change to the ratio AND any changes to the Strong and Weak Lists.  If Wave 3 down is about to begin, the Sector Ratio and the Lists should begin to reflect the new change in direction.

After yesterday’s session, the Strong List was led by Household Products, Semiconductors, Real Estate, Transportation, and PharmaBio.  The Weak Sectors were Telecoms, Food Drug, Energy, Autos and Food.

Gold (GLD rose 0.32 cents yesterday to 124.28.  GLD remains on a Buy Signal.

Crude Oil (UCO) remains on a Neutral Signal. Yesterday, the ETF dropped 0.70 cents to 17.83 after the volume portion of my VTI-volume indicator turned negative.  UCO continues to trade along its 50-day moving average causing its Bollinger Bands to narrow.  If UCO begins to move higher from the ‘band squeeze’ causing the timing signal on the cockpit to turn positive, I’m a buyer.

Same for Bonds (TMF).  After Monday’s trading, TMF moved to a Sell Signal.  However, as I mentioned yesterday TMF is in the process of forming the ‘Blade’ of a Bullish Hockey Stick Pattern. The pattern suggests that once a small pullback completes, TMF will resume its up-trend.  But for now, I continue to watch and respect the negative indicators.

Continue to watch the 1600 level on Amazon (AMZN) and the 1090 level on Google (GOOG).  Any break of those levels would put pressure on the large cap technology stocks.

That’s what I’m doing,

h

Market Signals for

02-06-2019

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

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.