Professor’s Comments July 24, 2019
Posted by OMS at July 24th, 2019
The markets staged a strong rally yesterday with the Dow coming within 31 points of its recent high. The rally was predicted by Monday’s small change in the A-D oscillator. It didn’t change any of the market timing signals for equities. The Dow and NASDAQ remain on Neutral Signals while the SPX and Russell 2K remain on a Buy.
It still appears that the markets are in the process of putting in a top. One of the reasons I believe a top could occur this week, if it’s not already in, is because of the high number of previous tops and bottoms with Fibonacci numbers that are coming together this week. In technical analysis, this is called a Fibonacci cluster or window. A Fibonacci window is always something to watch as it represents a high probability zone for a market turn. Students should pay close attention to the markets this week especially if the market timing signals change. The high number of new lows we’ve seen during the rally tells me that the internals are weakening. This is especially troublesome when the weakening breadth is accompanied by an EXTREMELY low VIX.
There were NO CHANGES to the Model Portfolio after yesterday’s session.
The Sector Ratio slipped to 17-7 Positive after yesterday’s session. However, eleven of the 17 sectors are still showing RS ratings of 1 or zero. So, the Strong List is still not that strong. The Strong List was led by Semiconductors, Material, Household Products, Insurance, and Media. The Weak Sector List was led by Retail, Service, Energy, Utilities, and Foods. Students should also pay close attention to the Sector Ratio now, as any weakening would be further evidence that a top is in.
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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
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