Professor’s Comments July 31, 2019
Posted by OMS at July 31st, 2019
A few quick comments….
Remember, the Federal Reserve will be announcing its latest policy for short-term interest rates at 2pm today. The market is looking for a quarter percent drop in rates. If the Fed eases, it will be an open admission that the economy is weakening. This announcement will be interesting to watch, mainly because inflation is currently on the rise, and NO Fed ever wants to lower interest rates at a time when inflation is rising. Dropping rates only worsens the inflation situation…and one of the Fed’s responsibilities is to keep inflation in check. So, we’ll see….
Also, there is a small change signal on the Board from Monday, so the markets could make a Big Move after the announcement.
From a signal change perspective, the volume portion of the market timing indicators turned negative after yesterday’s session on the Dow and NASADAQ. This makes the signal Neutral on those markets. The SPX and Russell 2K remain on weak Buy Signals.
The Sector Ratio weakened to 14-10 Positive after yesterday’s session. On Monday the Ratio was at 16-8 Positive. Also, eight of the 14 Sectors on the Strong List have RS ratings of 1 or zero, so the List is not that strong.
There were NO Changes to the Model after yesterday’s session. Still holding NUGT and UGL. Model now up 21.6 percent or 58 percent on an annualized basis.
The Model Portfolio is being shown for educational purposed only. The Buy/Sell actions in the Model Portfolio are made based on technical indicators that can and do change frequently and should NOT be considered as recommendations for trading an actual portfolio. Any gain or loss in the Model Portfolio should not be used to predict future performance of the Model.
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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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Category: Professor's Comments