Professor’s Comments July 26, 2017

Posted by OMS  at July 26th, 2017

The markets were mixed again yesterday. The Dow was up 100 points, closing at 21,613. The NASDAQ finished flat, up 1 point.  Volume on the NYSE was heavy, coming in at 112 percent of its 10-day average.  There were 226 new highs and 16 new lows.

Not much changed after yesterday’s trading with respect to the overall patterns.  The Dow, SPX and NADAAQ are all finishing large degree Ending Diagonal Patterns.  I’m still estimating that they have about another one percent or so of upside before completing 

The DMI and VTI on the Dow turned positive after yesterday’s action.  However my key volume indicator remains negative.  So the VTI and volume combination indicator is now neutral.  I don’t like to initiate new positions when these indicators are neutral.

Yesterday’s rally in the Dow turned The Dean’s List back to positive.  The Tide remains positive.  I did note that DIG, the positive Energy ETF has re-appeared on the Dean’s List.  OIL and Energy appear to be starting a new uptrend that could last for years.  Both DIG and OIL have completed TLT patterns and the DMI has turned positive.  A positive DMI after a TLB pattern is a short-term Buy Signal, especially with DIG back on the Dean’s List.  IF DIG can start to move above the 50 day moving average currently near 32.57, the next target will be the 200 near 35.69.

I bought a ‘trial’ position in XLE, the energy ETF for a move to the 68.50 level.

Tuesday’s Sector Report showed 17 strong and 7 weak sectors.  Service, Computers, Semis, Healthcare, and Insurance lead the strong sector list, with Retail, Autos, Housing, Telecoms, and Real Estate.  The large positive change in Delta Trend Score I mentioned in the Insurance Sector on Saturday led to a big gain in that sector during the past two days. Insurance stocks like AIG and ALL from the Member’s Watch List had nice gains.  It pay$ to watch for large DTS changes, especially if you’re trading the short-term bars. 

Gold appears to need to consolidate for a few more days before moving higher.  If gold pulls back a bit during this consolidation, I will add to my ‘trial’ position.

That’s what I’m doing,

h

Market Signals for

07-27-2017

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