Professor’s Comments January 30, 2019

Posted by OMS  at January 30th, 2019

The markets were mixed yesterday. The Dow rose 52 points, closing at 24,580.  The NASDAQ and SPX were down 57 and 4 points, respectively.  Volume on the NYSE was moderate, coming in at 97 percent of its 10-day moving average.  There were 52 new highs and 17 new lows.

Technology stocks on the NASDAQ were hit especially hard yesterday. However, last night Apple (AAPL) reported earnings that barely beat estimates on a 5 percent decline in revenue.  This was the first revenue decline for a Christmas holiday quarter since 2001.  But the stock jumped over 8 points in after hour trading!  Usually when stocks move higher on a less than positive earnings report, it usually leads to even higher prices in the days ahead.  We’ll see.

The Fed will announce its latest policy on interest rates at 2pm today.  Any change in policy could produce a large move in the markets.  BTW, IF you got long at yesterday’s close for the Fed Day trade, remember to manage your money prior to the 2pm announcement.

From a pattern perspective on the Dow, it’s still not clear if sub-wave ‘c’ up of wave 2 up is complete.  It may need one more small pop to re-test the 3 December high.  On the other hand, the trading action of the past few days has produced a small Head & Shoulders pattern on the Dow (DIA) that has a neckline line at the 243.20 level.  A break of this level could trigger a sell off in stocks.  Yesterday, DIA closed at the 245.71 level.

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.  However, the DMI on the NASDAQ-100 (QQQ) has turned negative.

The Sector Ratio remained at 12-12 neutral after yesterday’s session.  The Strong List was led by Semiconductors, Banks, Transportation, Material, and PharmaBio.  The Weak List was led by Food Drugs, Telecoms, Autos, Energy, and Household Products.

Gold (GLD rose another 0.69 cents to 123.98.  It remains on a Buy Signal.  GLD appears to be completing sub-wave 5 up of Wave 1 up.  If this is the case, GLD could rise to the 125 level before pulling back in Wave 2 down.  I would expect Wave 2 down to take GLD back to the 120 level.  If this happens, it would be very positive for gold. The gold miners also rose yesterday; however, they remain on a Neutral Signal.

That’s what I’m doing,

h

Market Signals for

01-30-2019

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.